Stocks slip as dollar heads for weekly loss
SPY•Global stocks fell modestly Friday as markets steadied after a tech-led selloff, while the dollar headed for its first weekly loss in five weeks. The S&P 500 fell 1.09% and the Nasdaq lost 2.1%.
1. Stocks extend weekly losses
Global stocks fell modestly Friday after a sharp tech-led selloff earlier in the week. The S&P 500 and Nasdaq finished lower and recorded weekly losses; the Dow fell 0.34% but still gained for the week. Technology and communication services led declines, while utilities and energy gained.
2. AI financing concerns
Investors have been scrutinizing debt-fuelled financing for the AI infrastructure buildout. CoreWeave shares fell 12% Friday and lost about 25% for the week. Traders also increased bets on further US rate hikes after stronger-than-expected inflation data on Wednesday.
3. Dollar and bonds
The dollar index fell 0.26% and was on track for its first weekly decline after four weeks of gains, as lower Treasury yields reduced its appeal. Government bonds steadied, with G7 bond markets on course for their strongest weekly performance since late May. Brent crude rose 3.72% to $109.86 a barrel.
