US Equity Indexes Slide Intraday Amid Tech Sector Sell-Off

US benchmark equity indexes declined intraday on Friday as major technology stocks led the market lower. The Nasdaq Composite fell 1.9% to 26,199.2, while the S&P 500 dropped 1% to 7,664.2. The Dow Jones Industrial Average lagged with a 0.5% decline to 51,928.6.

Communication services and technology sectors were the primary drivers of the losses, while the energy sector outperformed its peers. Salesforce, Microsoft, Cisco Systems, Alphabet and Amazon recorded the largest declines within the Dow Jones Industrial Average. Micron Technology, Advanced Micro Devices and Sandisk also posted intraday losses.

Market breadth remains a point of concern following the record closing highs achieved by the S&P 500 and Nasdaq Composite on Oct. 6. The recent rally was largely driven by a small group of tech giants, a dynamic that analysts suggest highlights underlying weakness in the broader Wall Street landscape. Many observers fear a potential correction because the majority of S&P 500 constituent stocks are trading well below their all-time highs.

In fixed income, Treasury yields rose during the session. The two-year rate increased by 1.5 basis points to 4.77%, and the 10-year rate climbed by 2.3 basis points to 5.11%. Economic data released by the Federal Reserve indicated that US industrial production grew more than expected in September, with manufacturing output rebounding despite weakness in the auto component.

Commodity prices moved in mixed directions. Brent crude oil gained 3.1% to $109.24 a barrel, and West Texas Intermediate increased by 2.9% to $100.79 per barrel. In precious metals, spot gold fell 0.3% to $4,158.46 per troy ounce, while silver rose 0.2% to $57.29 per ounce.