WASHINGTON: Wall Street’s major indices mostly slipped early Friday (Dec 12) as artificial intelligence stocks came under pressure, with investors shifting out of tech names and into other areas of the market.
The Dow Jones Industrial Average climbed 0.2 per cent to 48,780.25 minutes after trading began, but the broad-based S&P 500 Index slid 0.2 percent to 6,890.77.
The tech-focused Nasdaq Composite Index lost 0.4 percent to 23,501.41.
“AI stocks right now are under pressure,” said Adam Sarhan of 50 Park Investments. “Outside of that, you have very strong action in many other areas, and that’s very bullish.”
Among individual companies, shares in chipmaker Broadcom slumped 8.6 per cent even though it beat earnings expectations a day prior.
Oracle shares dropped 2.5 per cent early Friday, after larger losses the previous day.
Sarhan said the bigger story this quarter is concern surrounding the resiliency of AI stocks.
“It doesn’t mean the trade is over, it just means it’s taking a break,” he said.