US stock markets opened in negative territory on Friday, with the Nasdaq Composite and S&P 500 both dipping at the start of the session.
The decline marks a continuation of selling pressure in the technology sector, driven by growing investor skepticism over the sustainability of artificial intelligence valuations.
Traders are increasingly questioning whether the massive capital expenditures being announced by major tech firms will translate into commensurate returns.
This doubt has weighed heavily on semiconductor and software stocks, dragging down broader market sentiment.
The Nasdaq, which is heavily weighted toward these growth names, faced the steepest headwinds.
The pullback follows a record-breaking performance in the second quarter, marking a cautious start to the third quarter for US equities.