U.S. stocks turned lower on Friday as a chip stock rally on renewed optimism about the AI data center buildout ebbed.
The tech-heavy Nasdaq Composite and benchmark S&P 500 were both down about 0.1% Friday morning, while the blue-chip Dow Jones Industrial Average was off 0.2%. The major indexes broke two-day losing streaks yesterday after strong results from chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSM) and the announcement of a trade deal between the U.S. and Taiwan.
AI stocks continued to climb on Friday, with memory and data storage device makers leading the charge. Shares of Micron (MU) soared after regulatory filing revealed a company insider bought nearly $8 million of stock this week, bolstering confidence among tech investors. Shares of Sandisk (SNDK) and Seagate Technology (STX) were slightly higher.
Meanwhile, shares of power providers Constellation Energy (CEG) and Vistra (VST) declined following reports the Trump administration plans to make an announcement today related to the strain data centers are putting on electricity grids, raising uncertainty for utilities investors.
Treasury yields were slightly higher Friday morning. The yield on the 10-year Treasury, which impacts interest rates on a variety of consumer loans including mortgages, was recently 4.19%, up from 4.18% at yesterday’s close. Treasury yields are flat for the week, with concerns about the independence of the Federal Reserve offsetting this week’s slightly better-than-expected inflation report.
Regional banks capped off the first week of fourth-quarter earnings season. Shares of PNC Financial (PNC) rose after the lender reported better-than-expected results driven by strong dealmaking and advisory fee growth. Regions Financial (RF) stock slipped after it posted disappointing results and guidance.
Oil futures rose on Friday, with the price of West Texas Intermediate, the U.S. benchmark, rising 0.7% to $59.60 a barrel. Gold, which hit a record high earlier this week, was down 0.3% at $4,615 an ounce. Silver prices dropped sharply after a major run-up this week.
Bitcoin was little changed at $95,200, slightly off its highs from earlier in the week. The U.S. dollar index, which tracks the value of the greenback against a basket of global currencies, dipped 0.1% to 99.25.
