US equity markets retreated on Friday, with the S&P 500 and Nasdaq Composite posting losses as selling pressure intensified in the semiconductor sector.
The decline marks a continuation of the broader technology sell-off, driven by investor caution regarding the sustainability of the artificial intelligence rally that has powered gains earlier in the year.
Adding to the negative sentiment, Netflix reported disappointing results, further dampening investor appetite for large-cap technology equities.
The semiconductor segment faced particular headwinds, deepening the liquidation of chip stocks that have been central to the market's recent performance.
This repricing reflects a shift in sentiment as traders weigh valuation concerns against future growth expectations in the AI infrastructure build-out.
The weakness in chips dragged on the broader tech-heavy Nasdaq, which underperformed the S&P 500 as investors rotated away from high-multiple growth names.
Adding to the negative sentiment, Netflix reported disappointing results, further dampening investor appetite for large-cap technology equities.