U.S. stocks sink as AI concerns weigh on tech sector

U.S. stocks finished lower on Friday, with technology shares extending sharp declines amid renewed investor concerns over potential over-investment in artificial intelligence (AI).

The Dow Jones Industrial Average dropped 245.96 points, or 0.51 percent, to 48,458.05. The Standard and Poor's 500 sank 73.59 points, or 1.07 percent, to 6,827.41, while the Nasdaq Composite Index tumbled 398.69 points, or 1.69 percent, to 23,195.17.

Six of the 11 primary Standard and Poor's 500 sectors ended in red, with technology and energy leading the declines at 2.87 percent and 0.93 percent, respectively. Consumer staples and health care were the best performers, rising 0.93 percent and 0.3 percent, respectively.

U.S. chipmaker Broadcom plunged 11.43 percent despite reporting better-than-expected fiscal fourth-quarter earnings late Thursday, as investors focused on the semiconductor giant's elevated capital spending plans and questioned the near-term profitability of AI-related investments. Nvidia, AMD, Palantir Technologies, and Micron Technology also posted losses on Friday.

Meanwhile, the fashion brand Lululemon provided one bright spot, surging 9.6 percent after announcing that its CEO Calvin McDonald will step down at the end of January 2026.

The U.S. 10-year Treasury yield rose to nearly 4.2 percent from 4.15 percent at Thursday's close, adding modest pressure on growth-sensitive equities.

Despite the weekly weakness in large-cap technology, small-cap stocks continued to outperform following the Fed's latest rate cut, with the Russell 2000 index gaining nearly 2 percent for the week and posting multiple record highs.

U.S. stocks sink as AI concerns weigh on tech sector

The Chinese Kuomintang (KMT) party has welcomed the mainland's package of policies and measures aimed at the peaceful development of cross-Strait relations, stating that it reflects a high-level consensus to advance ties between the two sides.

The Taiwan Work Office of the Communist Party of China (CPC) Central Committee unveiled a package of 10 policies and measures on Sunday, aiming to advance the peaceful development of cross-Strait relations and enhance kinship and well-being among compatriots across the Strait.

The announcement came as a delegation from the KMT party, led by its chairwoman Cheng Li-wun, is wrapping up a mainland visit from Tuesday to Sunday.

"The purpose of this visit is to promote peace across the Taiwan Strait and enhance the well-being of the people. On April 10th, when the General Secretary of the CPC Central Committee, Xi Jinping, met with the Kuomintang chairwoman Cheng Li-wun, he specifically mentioned four points, including improving the well-being of the people. This shows that they have reached a high level of consensus on this in cross-Strait relations. And this was implemented in the announcement made this morning by the Taiwan Work Office of the CPC Central Committee. The Chinese Kuomintang party welcomes this and hopes that all parties in Taiwan will jointly promote it, without being hindered by any obstacles, so as to benefit the people of Taiwan," said Chang Jung-kung, vice chairperson of the KMT party.

KMT welcomes mainland's newly announced package of policies to boost ties with Taiwan