US tech stocks declined on Friday, marking a shift away from companies that have driven market gains this year. The S&P 500 and Nasdaq Composite fell, with Tesla and Nvidia among the biggest losers. Investors are reassessing holdings and adjusting to the Federal Reserve's hawkish stance on interest rates, which has increased borrowing costs and impacted the appeal of high-growth companies.
US tech stocks slipped on Friday as investors pivoted away from companies that had led markets higher for much of this year. The S&P 500, Wall Street’s main equity benchmark, fell 1.1 per cent on Friday, while the tech-heavy Nasdaq Composite dropped 1.5 per cent. Elon Musk’s electric-car maker Tesla was among the biggest laggards, falling 5 per cent, while chipmaker Nvidia dropped 2.1 per cent.
63 per cent on Friday, compared with lows in September of about 3.6 per cent. Higher yields typically tarnish the appeal of holding shares in fast-growing companies. Citigroup analysts on Friday said that while they still forecast the S&P 500 will rise about 10 per cent from current levels by the end of next year, they expect a “more volatile leg of the bull market ahead”.
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