United States equities pulled back on Friday as investors continued to rotate out of technology stocks and into value-oriented areas of the market, pushing major indices lower by the close and leaving the S&P 500 and Nasdaq with weekly losses.
The Dow Jones Industrial Average declined by 246.0 points or 0.5%, to 48,458.1, despite touching a new intraday all-time high earlier in the session. The S&P 500 fell 73.6 points or 1.1% to close at 6,827.4, while the Nasdaq Composite dropped 398.7 points or 1.7% to 23,195.2.
The Russell 2000 slid 39.1 points or 1.5% to 2,551.5, having also reached a fresh record during the trading day.
Losses in the broader market were driven largely by a sharp decline in technology stocks, with Broadcom falling 11.4%, despite the company beating fourth-quarter expectations and issuing a strong forecast for the current quarter, including guidance that artificial intelligence chip sales are expected to double.
Pressure across the artificial intelligence trade weighed on other major names, with AMD down 4.8%, Palantir Technologies falling 2.1% and Micron Technology shedding 6.7%.
In contrast, stocks in sectors such as financials, healthcare and industrials attracted renewed investor interest.
Shares of Visa ticked up 0.6%, Mastercard and UnitedHealth added 1.5% apiece, and GE Aerospace lifted 4%.
Lululemon Athletica stood out on the upside, with shares jumping 9.6% after the apparel maker raised its annual profit forecast and announced that chief executive Calvin McDonald would step down.
Costco Wholesale, however, finished little changed, even after reporting first-quarter revenue and profit that exceeded expectations as consumers continued to purchase both essential and discretionary items ahead of the holiday season.
During Thursday's session, the Dow and the S&P 500 each posted fresh record closes.
The Nasdaq, however, ended that session lower as heavyweight technology stocks including Alphabet and Nvidia retreated.
For the week, the S&P 500 fell 0.6% and the Nasdaq declined 1.6%. The Dow bucked the trend, rising 1.1% over the week.
On the bond markets, the yield on the 10-year U.S. Treasury note rose 0.8% to 4.186%, while the 2-year yield eased 0.4% to 3.524%.
