U.S. stocks fell on Friday as investors shifted away from technology stocks and towards value assets. Concerns over an AI bubble and rising Treasury yields led to a negative close for all three major indexes. The Dow Jones Industrial Average dropped 0.5%, the S&P 500 slipped 1.1%, and the Nasdaq fell 1.7%.

Tech stocks faced a retreat on Friday amid growing worries of an AI bubble. Concerns over profitability led to a sell-off, with shares of Broadcom, Inc. falling 11.4% despite beating earnings estimates. Other AI-focused companies like Advanced Micro Devices, Inc. and Palantir Technologies Inc. also saw declines.

Treasury yields rose on Friday after some Federal Reserve officials warned about elevated inflation and the risks of lower borrowing rates. The concerns further dampened investor sentiment amid ongoing uncertainty in the markets. Despite Friday’s losses, the Dow ended the week with gains, while the Nasdaq and S&P 500 closed lower.

Investors have been on edge about the future of AI stocks following the Federal Reserve’s recent rate cut. While no major economic data was released on Friday, concerns over inflation and lower borrowing costs weighed on market sentiment. The week saw mixed performances from major indexes, with the Dow ending higher but the Nasdaq and S&P 500 closing lower.

Read more at Nasdaq: Stock Market News for Dec 15, 2025