The S&P 500 Index ($SPX) (SPY) on Friday closed down -1.01%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.49%. September E-mini S&P futures (ESU26) fell -1.02%, and September E-mini Nasdaq futures (NQU26) fell -1.51%.
Stock indexes settled sharply lower on Friday, with the S&P 500 posting a 1-week low, the Dow Jones Industrials sliding to a 2.5-week low, and the Nasdaq 100 falling to a 5-week low. The global selloff in chipmakers continued on Friday amid concerns that massive gains fueled by the buildout of artificial intelligence have run too far to justify their elevated valuations. The rout began in Asia, with China’s Shanghai Composite falling -3% and Japan’s Nikkei Stock Index falling -4% after China's AI startup Moonshot launched its new Kimi K3 AI model, which the company says rivals the strongest offerings from OpenAI and Anthropic PBC, sparking concerns about the industry's spending spree. Losses in the Magnificent Seven technology stocks also weighed on the overall market.
