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The Dow fell sharply on Friday, dropping more than 500 points as tech giants within the so-called “Magnificent Seven” saw significant declines.
The Dow Jones Industrial Average lost 542 points, or 1.25%, by Friday afternoon, erasing much of the market’s gains from the holiday-shortened week. Meanwhile, the S&P 500 slipped 1.6% and the tech-heavy Nasdaq Composite dropped 2.3%. Additionally, the yield on the benchmark 10-year Treasury note rose to 4.58%.
The tech sector faced widespread selling pressure, with the “Magnificent Seven” mega-cap stocks trading in the red. Amazon (AMZN-1.39%) slid 2.2%, Apple (AAPL-0.64%) lost 2%, Tesla (TSLA-5.13%) dropped 4.8%, Microsoft (MSFT-1.48%) fell 2.4%, Alphabet (GOOGL-2.34%), the parent company of Google, declined 2.5%, and Meta Platforms (META-3.97%) shed 2%.
Investors continued to offload AI stocks on Friday, locking in profits during the holiday season. Shares of Super Micro Computer (SMCI-8.61%), Palantir (PLTR-3.81%), and Nvidia (NVDA-3.30%) — another Magnificent Seven stock — fell sharply, dropping by 5.5%, 3%, and 4.4% respectively.