Finance

Technology stocks bore the brunt of Friday's market downturn, specifically high-flying companies tied to the AI boom. Major chipmakers such as Intel, Advanced Micro Devices, and Micron Technology all saw declines exceeding 5.7%, while Nvidia dropped 4.4%. Investors appeared to be taking profits following a vertical run in these shares, leading to a 1.54% drop in the Nasdaq Composite.

Recent economic reports have shown inflation trending stubbornly high, with April's CPI reaching 3.4% and the annual PCE rising to 3.5%. These figures, bolstered by energy price shocks from Middle East conflicts, have significantly shifted market expectations regarding Federal Reserve policy. While the central bank has held rates steady between 3.5% and 3.75%, futures markets are now pricing in a 30% probability of a rate hike by the end of 2026.

AI chip designer Cerebras Systems executed the largest initial public offering of 2026, raising over $5.5 billion. After soaring 68% during its first trading day on May 14 to reach a market value of nearly $67 billion, the stock experienced a 10% retracement during the broader market selloff on Friday. The listing highlights continued institutional appetite for specialized AI hardware providers despite general market instability.