Nasdaq posts worst week in over a year as AI stocks slide

The Nasdaq composite index fell 2.4 percent on Friday, capping its worst week in over a year, driven by declines in AI-related stocks. The drop marks the steepest fall for major technology shares since President Donald Trump's April tariff announcement. The S&P 500 declined 1.1 percent and the Dow Jones fell 0.3 percent on Friday. Morgan Stanley's Jim Caron told the Financial Times the market risked a technology-led correction, typically defined as a ten percent drop from a peak. Aviva Investors' Richard Saldanha said the tech rally had "defied gravity for a period," but pressure from higher borrowing costs was now taking effect. The losses followed declines on both Wednesday and Thursday.