Tech stocks fell on Friday as the market’s biggest sell-off intensified, with tensions between the U.S. and Iran, rising Treasury yields, and concerns about AI’s use of logic.
The Magnificent Seven led the way down. Microsoft has been the weakest performer in recent weeks, down about 24% year to date and about 2% on Friday. Meta fell about 4.3% on the day and is down about 18% this year, while Nvidia fell 1.9% on Friday and is off about 11% year to date.
Alphabet fell about 2.4% on the day and is down about 12% this year, Tesla fell about 3% and is down about 17% year to date, and Amazon fell about 3.2% on Friday and has lost about 11% this year. Apple has been particularly strong, down nearly 7% year to date and down slightly on the day.
The broader market also weakened. The S&P 500 fell about 1.3% on Friday and is down about 6.5% year to date, while the Nasdaq Composite is down 1.8% on the day and about 15% this year. Treasury yields hovering around 4.5% are exacerbating the financial crisis and raising the financial crisis.
Crypto, which held its peak in early March, joined the selloff. Bitcoin fell below $66,000, Ethereum fell below $2,000, and major altcoins fell, signaling a shift in global risk.
At the same time, traditional safety nets rose sharply. Gold rose about 2.5% to about $4,500, while silver gained about 2% to $70. Despite the rally, both metals remain at record lows, suggesting that the move is more of a short-term reaction to the country’s problems than a structural change.
Geopolitics remains a major driver. Iran did to threaten disrupting traffic through the Strait of Hormuz, the world’s most critical oil supply route, while conflicting signals between US and Iranian officials on possible negotiations have added to the uncertainty. The threat of inflation has pushed up energy prices and fueled concerns about inflation.
Marketers are also questioning whether aggressive use of AI could mean a payback. Companies including Meta, Microsoft, and Amazon are expected to raise large-scale investments in 2026, raising concerns that the payback could take a long time to materialize.
Cost pressures are already reflected in staffing decisions. Shave this week cutting about 700 employees as part of an ongoing restructuring related to the push for AI, while Amazon has already announced its plans to reduce the workforce by about 16,000 positions.
One relative has been Apple. Analysts point to its approach of leaning on partnerships with OpenAI and Google on AI technology instead of building it fully in-house, helping to reduce the pressure on the time spent on investment and support its work.
