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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) slid 2.2%, Apple (AAPL) lost 2%, Tesla (TSLA) dropped 4.8%, Microsoft (MSFT) fell 2.4%, Alphabet (GOOGL), the parent company of Google, declined 2.5%, and Meta Platforms (META) shed 2%.
Investors continued to offload AI stocks on Friday, locking in profits during the holiday season. Shares of Super Micro Computer (SMCI), Palantir (PLTR), and Nvidia (NVDA) — another Magnificent Seven stock — fell sharply, dropping by 5.5%, 3%, and 4.4% respectively.