Global financial markets recorded a broad decline on Friday, with sustained pressure on technology and semiconductor stocks amid growing concerns over artificial intelligence valuations and profit-taking following a strong rally during the current quarter.
On Wall Street, major indices fell at the open. The Dow Jones Industrial Average dropped 116.9 points, or 0.23%, to 51,803.77, while the S&P 500 declined 0.61% to 7,312.74, and the Nasdaq Composite fell 1% to 25,105.41, under direct pressure from technology and chip stocks.
European stocks pulled back from record levels, led by technology shares that tracked weakness in the sector globally, while Zalando's stock fell after Germany's financial regulator launched an investigation into the accounts of the online retail company.
The pan-European Stoxx 600 index closed down 0.7%, posting modest gains over the course of the week. At the open of European trading, Germany's DAX fell 0.8% to 24,793.58 points, France's CAC 40 slipped 0.4% to 8,398.14 points, and Britain's FTSE fell 0.4% to 10,490.62 points.
Zalando shares plunged 6.3% after Germany's Federal Financial Supervisory Authority opened an investigation into the online fashion retailer's 2025 financial statements, citing evidence of violations of accounting regulations. The broader retail sector lost 1.6%. Meanwhile, uncertainty prevailed across the global technology sector as investors focused on a sharp rise in memory chip costs driven by strong AI-related demand. Asian stocks fell sharply in the afternoon, while the tech-heavy Nasdaq on Wall Street swung between gains and losses.
Richard Ryle, chief investment officer at Questar Capital Partners, said: