Tumbling tech stocks drag Wall Street to its worst day in 3 weeks

NEW YORK (AP) — More drops for superstar artificial-intelligence stocks knocked Wall Street off its record heights on Friday.

The S&P 500 fell 1.1% from its all-time high for its worst day in three weeks. The weakness for tech stocks yanked the Nasdaq composite down by a market-leading 1.7%, and the Dow Jones Industrial Average gave back 245 points, or 0.5%, after setting its own record the day before.

Broadcom dragged the market lower and tumbled 11.4% even though the chip company reported a stronger profit for the latest quarter than analysts expected. Analysts called the performance solid, and CEO Hock Tan said strong 74% growth in AI semiconductor revenue helped lead the way.

But investors may have been concerned with some of Broadcom’s financial forecasts, including how much profit it can squeeze out of each $1 of revenue. The AI heavyweight may also have simply run out of momentum after its stock came into the day with a surge of 75.3% for the year so far, more than quadruple the S&P 500’s gain.

Broadcom’s drop added to worries about the AI boom that flared a day before. That’s when Oracle plunged nearly 11% despite likewise reporting a bigger profit for the latest quarter than analysts expected.

Questions remain about whether all the spending that Oracle is doing on AI technology will produce the kind of profits that make it worth the expense, along with how the tech giant will pay for it. Such doubts are dogging the AI industry broadly, even as many billions of dollars continue to flow in.

Broadcom was the heaviest weight on the S&P 500 Friday, followed by Nvidia. The chip company that’s become the poster child of the AI boom fell 3.3%. Oracle fell another 4.5%.

The stock market also felt some pressure from the bond market, where the yield on the 10-year Treasury climbed to 4.18% from 4.14% late Thursday. Higher yields can discourage investors from paying high prices for stocks and other investments, particularly when critics say they already look too expensive.

Friday’s drops for AI superstars continue a jagged return toward Earth after they earlier had been the main engine lifting Wall Street higher. Other stocks that used to struggle with uncertainty about the U.S. economy’s strength and what the Federal Reserve will do with interest rates, meanwhile, have been doing better.

The stocks in the Dow Jones Industrial Average, which has much less of an emphasis on tech, rose 1% this past week. That’s much better than the Nasdaq composite’s drop of 1.6%.

Notwithstanding Friday’s rise in yields, investors have been feeling more optimistic about interest rates. The Fed earlier this week cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.

Wall Street loves lower rates because they can boost the economy and send prices for investments higher, even if they potentially make inflation worse.

The Fed’s chair, Jerome Powell, did hint on Wednesday that interest rates may be on hold for a while. But he helped soothe nerves when his comments appeared less harsh than some investors expected in shutting off the possibility of more cuts in 2026.

Stocks of companies that depend on spending by U.S. consumers were relatively strong Friday, as two out of every five stocks within the S&P 500 rose. Oil prices eased this week, which could help ease people's bills, and hopes are rising that easier interest rates will help support spending.

Chipotle Mexican Grill rose 3.6%, McDonald’s climbed 2.3% and Norwegian Cruise Line added 1.5%.

The biggest gain in the S&P 500 came from Lululemon Athletica, which jumped 9.6% after reporting better profit and revenue for the three months through Nov. 2 than analysts expected. It also said its CEO, Calvin McDonald, plans to step down at the end of January following pressure to boost revenue.

All told, the S&P 500 fell 73.59 points to 6,827.41. The Dow Jones Industrial Average dropped 245.96 to 48,458.05, and the Nasdaq composite slumped 398.69 to 23,195.17.

In stock markets abroad, indexes fell modestly in Europe following a stronger finish in Asia.

Stocks jumped 1.7% in Hong Kong and rose 1.4% in Tokyo for two of the world’s bigger gains.

AP Writers Teresa Cerojano and Matt Ott contributed.

Trader William Lawrence works on the floor of the New York Stock Exchange, Thursday, Dec. 11, 2025. (AP Photo/Richard Drew)

Trader Jonathan Mueller works on the floor of the New York Stock Exchange, Thursday, Dec. 11, 2025. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Dec. 12, 2025. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Dec. 12, 2025. (AP Photo/Ahn Young-joon)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Thursday, Dec. 11, 2025. (AP Photo/Richard Drew)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Dec. 12, 2025. (AP Photo/Ahn Young-joon)

New York Jets (3-10) at Jacksonville (9-4)

Sunday, 1 p.m. EST, CBS.

BetMGM NFL odds: Jaguars by 13 1/2.

Against the spread: Jets 7-5-1, Jaguars 8-5.

Series record: Jaguars lead 9-8.

Last meeting: Jets beat the Jaguars 32-25 on Dec. 15, 2024, in Jacksonville.

Last week: Jets lost to the Dolphins 34-10; Jaguars beat the Colts 36-19.

Jets offense: overall (29), rush (7), pass (32), scoring (25).

Jets defense: overall (17), rush (30), pass (8), scoring (26t).

Jaguars offense: overall (17), rush (15), pass (19), scoring (9).

Jaguars defense: overall (11), rush (1), pass (22), scoring (11).

Turnover differential: Jets minus-15; Jaguars plus-8.

QB Brady Cook. The undrafted rookie will make his first NFL start with both Tyrod Taylor and Justin Fields ruled out for the game. Cook, who was Taylor’s backup last Sunday against Miami because Fields was ruled out ahead of the game with knee soreness, filled in when Taylor was hurt in the first quarter and went 14 of 30 for 163 yards and two interceptions in his NFL regular-season debut.

RB Travis Etienne. He hasn't topped 100 yards rushing since late September, a nine-game span in which he averaged 3.8 yards a carry. But he could be in for a big afternoon against a Jets defense that ranks 30th in the league against the run.

The Jaguars held Hall to 30 yards on the ground in their last meeting and hope to have similar success Sunday. Jacksonville is allowing 82.9 yards a game — on pace to set the franchise mark. The unit hasn't allowed any single runner to reach 75 yards, and only two running backs have gained more than 20 yards on any carry against the Jags this season.

Jets: Taylor (groin) and Fields (knee) were ruled out Friday after not practicing during the week. ... TE Mason Taylor (neck), LB Kiko Mauigoa (neck) and CB Azareye'h Thomas (shoulder) are also out.

Jaguars: S Andrew Wingard and LT Walker Little, both of whom sat out against Indy, cleared concussion protocol and could return. Wingard was off the final injury report, while Little was listed as questionable. ... WR Parker Washington (hip) is working his way back after also missing the game last week, but it questionable vs. the Jets.

The Jaguars are 5-2 against the Jets in Jacksonville, with the last four wins being by a combined score of 129-30.

The Jets have been eliminated from playoff contention for the 15th straight season — the NFL's longest active drought. ... New York also has its sixth straight season with double-digit losses and ninth in 10 years. ... Cook will become the 55th starting QB in franchise history and the first undrafted rookie to do so since J.J. Jones in 1975. ... Taylor started the last three games in place of the benched Fields. ... Cook and Taylor didn't get a lot of help from their receivers against the Dolphins. They had six dropped passes, giving them 26 for the season — third in the NFL behind Jacksonville (38) and Denver (33), according to Pro Football Reference. ... RB Breece Hall is 123 yards rushing from his first 1,000-yard season of his career. He’ll be looking for a bounce-back game after rushing for just 43 yards and being held without a catch for just the second time this season. ... The Jets have no interceptions through 13 games, an NFL record. ... Isaiah Williams is the third player in franchise history to have multiple punt return TDs in one season, joining Dick Christy (1961 and 1962) and Santana Moss (2002). ... Kene Nwangwu also has a 99-yard kickoff return for a score, giving the Jets their most TDs on returns since also having three in 2007. ... K Nick Folk needs two field goals to join Pat Leahy as the only players in franchise history to make 200. ... The Jaguars are trying to reach double-digit wins for the second time since 2007. Their plus-five win differential from 2024 to 2025 ranks second in the NFL behind New England (plus-seven). ... Jacksonville’s 182 points scored since Week 9 are the most in the AFC and the third most in the NFL. The team’s 65-point differential since its Week 8 bye leads the AFC. ... LB Foye Oluokun is the first player since 2019 with 100 or more tackles and 10 passes defensed through the first 13 games of a season. ... QB Trevor Lawrence is going for his fourth consecutive game with 225 or more yards and two TD passes. … WR Brian Thomas Jr. has at least 80 yards receiving in three straight games at EverBank Stadium. He had 10 catches for 105 yards and two TDs in his last game against the Jets. … WR Tim Patrick has a TD catch in three consecutive home games. ... DE Josh Hines-Allen has at least one sack in five of his last six games.

Jaguars WR Jakobi Meyers has a TD catch in three consecutive games.

AP NFL: https://apnews.com/hub/NFL

New York Jets tight end Mason Taylor (85) reaches for a tipped pass during the first quarter of an NFL football game against the Miami Dolphins, Sunday, Dec. 7, 2025, in East Rutherford, N.J. (AP Photo/Adam Hunger)

Jacksonville Jaguars head coach Liam Coen challenges a call during the second half of an NFL football game against the Indianapolis Colts, Sunday, Dec. 7, 2025, in Jacksonville, Fla. (AP Photo/John Raoux)

New York Jets quarterback Brady Cook (4) passes against the Miami Dolphins during the fourth quarter of an NFL football game, Sunday, Dec. 7, 2025, in East Rutherford, N.J. (AP Photo/Adam Hunger)

Jacksonville Jaguars defensive end Josh Hines-Allen (41) celebrates as he leaves the field following an NFL football game against the Indianapolis Colts, Sunday, Dec. 7, 2025, in Jacksonville, Fla. (AP Photo/John Raoux)