Global equity markets retreated on Friday, capping a turbulent week for technology shares as skepticism grew regarding the sustainability of AI-fueled gains that have propelled major indexes to record highs.
The broad-based selloff was exacerbated by a rally in crude oil prices, which added cost pressures to an already cautious sentiment among growth investors.
The selling pressure extended beyond US mega-caps.
Declines in Tesla and Alphabet shares dragged down sentiment across the sector, with losses spreading to Korean memory chip manufacturers.
The correlation between tech valuations and energy costs is tightening as investors weigh the margin impact of higher input prices against the long-term promise of artificial intelligence infrastructure spending.
Crude oil prices advanced in early trading, providing a tailwind for energy producers but acting as a headwind for equity risk appetite.