Tech Selloff Drags Wall Street Lower as Oil and Yields Rise
US stocks fell on Friday, with the Dow down 1.2% and the S&P 500 off 0.5%, as worries about the cost of artificial intelligence investments weighed on technology shares. Brent crude rose about 3% to above US$116 a barrel, and the 10-year Treasury yield reached 5.00%. The Federal Reserve is expected to keep rates unchanged at its meeting on 28 October.
US equities ended lower, with the Dow at 52,215 after a 1.2% drop and the S&P 500 at 7,624, down 0.5%. The Nasdaq slipped 0.21%. Meta lost roughly 7% Thursday and another 1% Friday as investors questioned how AI data-centre spending would be financed.
Brent climbed about 3% to more than US$116, while the 10-year Treasury yield hit 5.00%. US composite PMI eased to 57.6 from 58.4, though new orders rose at their quickest pace in about four and a half years. Markets expect the Fed to hold on 28 October.
Higher oil and bond yields could keep borrowing costs elevated for households and firms, while expensive fuel may squeeze transport and food budgets. In Latin America, import-sensitive economies such as Brazil may find rate cuts harder to justify, affecting credit and investment. Tech-sector employees and investors may face more scrutiny of AI spending, though the broader market move was modest.