Tech Sell-Off Drags Nikkei and Nasdaq Lower as Oil Jumps

what happened

Japan's stock market ended a three-day winning streak on Friday, in which the Nikkei had gained more than 2,450 points, or 4%. The index dropped 1,369.36 points, or 2.12%, to close at 63,290.11, after trading between 62,711.42 and 64,589.04. Losses were concentrated in technology and semiconductor shares, according to RTTNews, whose report was carried by TradingView.

In the United States, the major averages opened lower and kept sliding through the session, closing near their lows. The Dow lost 572.25 points, or 1.09%, to 51,770.31. The Nasdaq plunged 747.73 points, or 2.86%, to 25,437.00, its lowest close in three months. The S&P 500 slid 140.32 points, or 1.82%, to 7,580.07. Over the week, the Nasdaq fell 2%, the Dow lost 0.9% and the S&P 500 dropped 0.6%.

Renewed doubts about the artificial intelligence trade weighed on tech names, and Intel and Amazon were among the biggest decliners after disappointing quarterly results. Oil added to the pressure: West Texas Intermediate for December delivery rose $2.39, or 2.34%, to $104.39 a barrel, on supply worries tied to the Middle East conflict and reports of possible renewed U.S. military action against Iran this week.

why it matters

The combination matters for markets: a tech sell-off and a sharp oil rally in the same session raise inflation concerns and can weigh on appetite for risk. According to RTTNews, Japan's market is likely to open under pressure again on Monday, but that is the source's expectation, not a guaranteed move.

market impact

Japan and US tech stocks: pressure from the AI-related sell-off; oil: rise on supply concerns

• ▼Nikkei pressure down — selling of technology and semiconductor shares
• ▼Nasdaq pressure down — renewed doubts about the AI-related trade
• ▲WTI crude pressure up — supply worries tied to the Middle East conflict

instruments