Nasdaq heads for weekly loss as tech sell-off and oil uncertainty pressure markets

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Nasdaq faces weekly loss

Highlights

Nasdaq Composite extends weekly drop, down over 7% and 1.5% lower Friday, driven by doubts about the AI boom's returns and OpenAI IPO delay rumors.
WTI crude volatility intensifies as Iran's attack on a cargo ship disrupts Strait of Hormuz shipping, pressuring markets and prompting risk reduction among investors.
Apple plunges 6% after 17%-25% product price hikes due to memory costs, while Microsoft slips 3.5%, both signaling technology sector fragility.

Tech losses deepen in week-ending trade

Cboe Global Markets says the tech-heavy Nasdaq Composite is extending its decline after four straight weak sessions, with the index down about 1.5% in early action and more than 7% lower for the week ahead of Friday’s close.

The S&P 500 is also retreating, down about 0.62%, while the Dow Jones Industrial Average is moving in and out of positive territory. The selling comes as investors continue to question whether the AI boom is delivering sufficient returns on investment, with sentiment also hit by a New York Times report that OpenAI is considering delaying its initial public offering until next year after rocky trading in SpaceX’s IPO.

The pressure is not limited to U.S. markets. South Korea’s Kospi falls 5.8% after a 20-minute trading halt, while Japan’s Nikkei drops more than 4%, led in part by a 13% fall in Softbank Group, one of OpenAI’s leading backers.

Oil and pricing moves add to market strain

Energy markets are also contributing to the unsettled tone after an attack by Iran on a cargo ship on Thursday shook confidence in shipping through the Strait of Hormuz. The Wall Street Journal reports that evacuation plans for ships in the waterway are put on hold until the International Maritime Organization can confirm safe passage.

WTI crude is moving below and above the $70 a barrel level as traders monitor tensions around the strait and recent swings in U.S./Iran negotiations. The uncertainty is adding to broader market nerves as some investors look to reduce risk before the week ends.

Technology shares are facing company-specific pressure as well. Apple fell 6% on Thursday after raising prices on selected iPhone and MacBook products by 17% to 25%, citing higher memory and storage costs, while Microsoft lost 3.5% after lifting prices on its Xbox console series. Apple says more price increases may follow, and Microsoft remains down more than 29% from a year earlier even as both stocks show early signs of stabilizing in Friday trading.

Our earlier coverage of the tech-stock slide explained how investors pulled back from AI-linked names as higher memory and infrastructure costs started feeding into consumer electronics pricing. We noted that Apple’s and Microsoft’s price hikes, alongside concerns that OpenAI could delay its IPO, added pressure to the Nasdaq and weighed on sentiment across global markets.

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