Wall Street's main stock indexes were lower on Friday, as renewed selling in technology and chip stocks weighed on the broader market amid concerns over rising borrowing costs and debt-funded investments in artificial intelligence (AI).




The S&P 500 fell 0.61%, while the Nasdaq Composite dropped 1.3%, putting both indexes on track for weekly losses. The Dow Jones Industrial Average was nearly flat, up 0.01%, and headed for a weekly gain, Reuters reported.




Technology stocks remained under pressure as investors reassessed the financing behind the AI infrastructure boom. CoreWeave shares fell 9% on Friday and were on track to lose nearly 23% for the week, amid growing scrutiny of the funding required for large-scale AI infrastructure investments.




"We're starting to see some cracks in the financing of data centers because you're not too sure who's going to be the winners," Tom Plumb, portfolio manager at Plumb Balanced Fund, told Reuters.




Concerns over inflation and the prospect of higher interest rates have also unsettled markets. Stronger-than-expected US consumer and wholesale inflation data this week prompted traders to increase bets on further Federal Reserve rate hikes.




Meanwhile, US Treasury yields eased on Friday as bond markets stabilised following a rush towards safe-haven assets in the previous session. The yield on the benchmark 10-year Treasury note stood at 5.085%, according to Reuters.




Among individual stocks, Micron Technology, Advanced Micro Devices, Broadcom and Intel declined, while gains in financial stocks helped limit broader market losses.




Elsewhere, Brent crude futures rose 0.85% to $106.83 per barrel, supported by concerns over oil supplies amid heightened tensions in the Middle East and disruptions around the Strait of Hormuz.