Stocks Extend Slide as AI Rally Stalls and Tech Losses Deepen – Europe Market Wrap
Stocks fell again Friday as investors grew cautious at the end of a volatile week that saw the artificial intelligence-driven rally lose steam.
Nasdaq 100 futures slipped 0.4% after earlier gains evaporated, following another bout of selling in the biggest tech names on Thursday. The S&P 500 is down 1.8% for the week, ending a stretch of steady advances. Treasuries held most of their previous session’s gains, while the dollar was little changed. Bitcoin extended declines, heading for its worst week since March.
The Magnificent Seven megacaps were mostly lower in premarket trading, led by Nvidia, which extended Thursday’s 3.7% drop. Microsoft headed for its longest losing streak since 2011. Tesla fluctuated after shareholders approved Elon Musk’s potential $1 trillion pay package.
Despite the weakness, analysts noted that the recent swings have lacked a clear catalyst and appear more like a period of consolidation than a reversal. Traders expect volatility to persist but remain contained, with solid corporate earnings and the prospect of eventual Federal Reserve rate cuts helping to cushion sentiment.
Investor flows continue to signal confidence. US equity funds drew $19.6 billion in the week through November 5, marking an eighth straight week of inflows, according to Bank of America, citing EPFR data.
