US sharemarkets finished lower on Friday, with technology stocks again under pressure as renewed concerns over artificial intelligence spending and escalating conflict in the Middle East weighed on investor sentiment.
The S&P 500 fell 1.01% to 7,457.69, while the Nasdaq Composite lost 1.4% to 25,520.24. The Dow Jones Industrial Average declined 406.55 points, or 0.77%, to 52,146.42.
The weakness capped a negative week for Wall Street, with the S&P 500 down 1.6%, the Nasdaq losing 2.9% and the Dow falling 0.9%.
Semiconductor stocks remained under heavy selling pressure after Chinese start-up Moonshot AI unveiled a new model that it said narrows the performance gap with leading US artificial intelligence systems. The VanEck Semiconductor ETF fell almost 9% for the week, while investors continued to question whether the pace of AI investment can be sustained.
Netflix also weighed on sentiment, falling more than 7% after its outlook failed to reassure investors that subscriber and revenue growth would remain strong.
Oil prices climbed sharply as tensions between the US and Iran escalated. West Texas Intermediate crude rose 4.5% to settle at US$82.49 a barrel, while Brent crude gained 4.6% to US$88.10 after further military strikes disrupted confidence around shipping through the Strait of Hormuz.
Australian Market Outlook
Australian shares are expected to face another volatile session as investors weigh renewed geopolitical risks against earlier positive futures pricing.
S&P/ASX 200 futures were indicating a gain of 54 points, or 0.6%, to 8,842 before fresh US strikes on Iran over the weekend heightened uncertainty and lifted energy prices.
The renewed conflict is expected to keep energy stocks in focus, while continued weakness across global semiconductor shares may weigh on local technology names. Investors will also be watching whether rising oil prices and heightened geopolitical tensions begin to influence expectations for inflation and interest rates in the weeks ahead.
