Wall Street’s major stock indexes recovered from sharp early losses on Friday as investors bought beaten-down technology shares, while oil prices declined after shipping traffic resumed through the Strait of Hormuz, reports AFP.
US markets opened lower after renewed pressure on technology stocks. Apple announced price increases for laptops, tablets and other devices, citing rising memory and storage costs driven by demand for artificial intelligence. Microsoft also raised prices for its Xbox gaming consoles, pointing to higher AI-related component costs.
The tech-heavy Nasdaq closed 0.2 percent lower, while the Dow Jones Industrial Average and the S&P 500 each slipped 0.1 percent after paring steeper losses earlier in the session.
The sell-off spread across Asia, where South Korea’s Kospi plunged 5.8 percent, triggering a 20-minute trading halt. Shares of chipmaker SK hynix fell more than 8 percent.
Japan’s Nikkei 225 dropped 4.2 percent, led by a more than 12 percent decline in SoftBank after The New York Times reported that OpenAI was considering delaying its initial public offering until next year over concerns it might not attract sufficient investor demand for a $1 trillion valuation.
Technology stocks have driven global equity markets to record highs in recent years, fuelled by optimism over artificial intelligence. However, investors are increasingly questioning whether valuations have become excessive and when companies will begin generating meaningful returns on massive AI investments.
“The substantial expenses tied to modern AI infrastructure have firms scrambling for cash through debt sales and equity offerings, adding risk to the market,” said Jose Torres, senior economist at Interactive Brokers.
Forex.com analyst Fawad Razaqzada said some profit-taking was expected after the sector’s prolonged rally, but recent moves also reflected growing concerns that expectations for AI-related companies had outpaced commercial reality.
Despite the early decline, investors stepped in to buy technology shares at lower prices.
“Dip buyers have come storming in to steady the ship after the wave of selling over the last 18 hours,” said Chris Beauchamp, chief market analyst at IG.
Meanwhile, oil prices retreated as vessels resumed transiting the Strait of Hormuz, easing concerns over global energy supplies.
According to shipping trackers, commercial vessels continued to leave the Gulf despite some using routes not authorised by Iran. The movement resumed after a recent attack on a cargo ship in the Gulf of Oman temporarily halted a United Nations-led evacuation effort.
The UN maritime agency said its operation had already helped free 115 vessels and around 2,500 seafarers stranded by the dispute over navigation through the strategic waterway.
International benchmark Brent crude fell 4.3 percent to $71.99 a barrel, while US benchmark West Texas Intermediate declined 3.7 percent to $69.23, returning both contracts to levels seen before the conflict involving Iran began.
Bd-pratidin English/ Jisan
