Finance

Wall Street finished lower on Friday as investors reacted to the potential for further monetary tightening from the central bank. The Nasdaq Composite dropped 0.52%, while the S&P 500 and Dow Jones Industrial Average suffered milder losses. Despite the daily retreat, all three major benchmarks managed to secure positive returns for the overall week, boosted by an artificial intelligence semiconductor rally earlier in the period.

The bond market saw yields push higher, particularly at the short end of the curve, as the 2-year U.S. Treasury note jumped significantly to around 4.34%. Simultaneously, the U.S. dollar experienced its sharpest daily climb in two and a half months against major foreign currencies. The prospect of sustained higher interest rates severely dented precious metals, causing spot gold to slide more than 3% to settle near $4,455 an ounce.

Although Nvidia post-earnings momentum initially lifted the technology sector, the broader semiconductor space faced downward pressure by Friday. Marvell Technology beat second-quarter market expectations and raised guidance, but its stock still tumbled roughly 10%. Investors showed high expectations for artificial intelligence-linked firms, causing the VanEck Semiconductor ETF to drag lower.