Wall Street closed lower on Friday, dragged down by sharp declines in AI chip stocks. Healthcare shares including Moderna posted gains amid shifting investor focus.
AI chip companies faced significant selling pressure as investors weighed the long-term promise of artificial intelligence against the heavy costs of building data centers. Concerns over rising energy prices and chip expenses added to worries about inflation, affecting firms such as Apple.
Market participants discussed the possibility of higher interest rates in response to these inflationary signals. The mixed session highlighted differing performance across sectors, with technology underperforming while healthcare advanced.
The moves reflect ongoing debate about the scale of spending required to support AI growth and its potential effects on corporate margins.
