Wall Street Slides Into the Red as Tech Selloff Drags Markets to Weekly Losses

U.S. stocks ended sharply lower on Friday, capping a punishing week for technology shares as renewed investor anxiety sent the Dow Jones Industrial Average, S&P 500, and Nasdaq all into retreat. The selloff reflected growing unease over valuations, interest rate uncertainty, and the sustainability of the tech-driven rally that had powered markets earlier this year.

The Nasdaq, heavily weighted toward major technology companies, led the decline as investors continued to pull back from high-growth stocks. Shares of several industry giants fell for a fifth straight session, wiping out billions in market value and reversing gains built on optimism around artificial intelligence and earnings growth.

The S&P 500 also slid, pressured by weakness across communication services, semiconductors, and consumer technology sectors. Even traditionally defensive stocks struggled to provide shelter, signaling broad-based caution rather than a rotation into safer assets.

Meanwhile, the Dow posted more modest losses but still closed the week firmly in negative territory. Industrial and financial stocks offered limited support as traders reassessed expectations for interest rate cuts and digested mixed economic data pointing to slowing momentum without a clear downturn.

Market analysts say the week’s decline reflects a reset in sentiment rather than panic. Elevated valuations in tech had left little room for disappointment, making the sector vulnerable to profit-taking once momentum slowed. Rising bond yields and uncertainty over central bank policy have further weighed on risk appetite.

Despite the setback, some investors view the pullback as a healthy correction after months of strong gains. Attention now turns to upcoming inflation data, earnings reports, and guidance from policymakers, all of which could shape market direction in the weeks ahead.

For now, Wall Street appears braced for continued volatility, with traders balancing long-term optimism against short-term pressures in a market still searching for its next clear catalyst.