Nasdaq, S&P 500, Dow come off lows as rough week for tech nears end

Big Tech “Magnificent Seven” stocks were headed for steep weekly losses on Friday morning as investors increasingly doubt whether the high valuations and spending levels that have defined AI development so far are sustainable.

Chipmaking leader Nvidia (NVDA) lost nearly 3% in the first hour of trading Friday morning after a Trump administration official said “there will be no federal bailout for AI” and comments from CEO Jensen Huang that the U.S. is poised to lose the AI ​​arms race against China. Nvidia is on track for its worst week since April, losing more than 9.5% in the past five days.

Shares of Meta (META) and Microsoft (MSFT), which announced big spending plans for the year, lost around 2.5% and 0.5%, respectively. Each has lost more than 4% in the last five days.

The Magnificent Seven received its latest shock after the market closed on Thursday, when Tesla (TSLA) shareholders gave CEO Elon Musk a pay package potentially worth $1 trillion. The EV maker and hardware company lost another 3.5% Friday morning.

Chipmaker Intel (INTC), which is not a member of the Magnificent Seven but has direct ties to many companies, was one of the green spots among Big Tech, up about 1% on Friday morning. Musk said at Thursday’s Tesla shareholder meeting that Tesla needs to build large amounts of chip manufacturing capacity to power its autonomous EVs, and he thought the automaker could work with Intel toward that goal.

Rounding out the group, Alphabet (GOOG) and Amazon (AMZN) headed for losses of over 1%, while Apple (AAPL) bucked the trend, gaining just over 0.2%.

Chipmakers AMD (AMD) and Broadcom (AVGO) fell more than 2% on Friday and are headed for weekly losses of more than 9% and more than 5%, respectively.