"Equities fell on Friday, with the S&P 500 set to halt a streak of three weeks of gains as a gauge of US consumer sentiment sank to a more than three-year low. Things were even worse for the Nasdaq 100 as a rout in artificial-intelligence winners put the tech-heavy measure on track for its worst week since the April tariff-fueled tantrum - when the index entered a bear market."
"Worries about valuations in AI high-flyers reaching unsustainable levels surfaced after a torrid surge from this year's bottom spurred calls for a breather. Technical indicators started flagging reasons for caution, adding to the drag on sentiment from warnings by Wall Street chief executives about a frothy market. "Major indices are facing selling pressure this week," said Craig Johnson at Piper Sandler. "Investors should prioritize good risk/reward setups, potentially after a healthy pullback within this bull market.""
"This week's slide also comes at a time when earnings season is winding down, with investors becoming reliant on private data amid a dearth of economic figures due to the ongoing government shutdown. That's left the market vulnerable to volatility as it happened in the previous session with a report painting a bleak jobs picture. While the US payrolls report was not released this Friday due to the shutdown, a survey conducted by 22V Research showed that a labor-market unwind is the biggest risk to trading."
Wall Street shifted into a risk-off mode as pricey market segments and a renewed crypto slide pressured equities and left crypto barely positive for 2025. The S&P 500 paused a three-week rally while the Nasdaq 100 faced its worst week since April after AI winners fell. Technical indicators and warnings from chief executives raised valuation concerns. The winding down of earnings season and a government shutdown forced reliance on private data, increasing sensitivity to labor-market signals. Bitcoin fell about 9%, 10-year Treasury yields held near 4.09%, and the dollar eased roughly 0.2%.
Read at Fortune
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