Stocks Tumble as Year’s Winning AI Bets Take a Hit

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Wall Street traders took profits on the year’s biggest artificial intelligence winners, dragging global gauges back from the brink of record highs. Longer-dated bond yields climbed.
A disappointing sales outlook from Broadcom Inc. sent the chipmaker tumbling 11% and weighed on rivals, further fueling investor anxiety over AI wagers initially prompted by Oracle Corp. The AI bellwether’s stock drop started Thursday following a forecast for rising capital outlays and a longer timeline to a revenue payoff. The slump deepened Friday on a report of delays to some of Oracle’s data center projects. Shares of companies tied to the AI power infrastructure also slid.
The Nasdaq 100 dropped 1.9% while The S&P 500 fell 1.1% after the index had notched a record close in the previous session. The Dow Jones Industrial Average and Russell 2000 pulled back from all-time highs.
The selloff put a damper on the ebullience sparked by the Federal Reserve’s third-straight interest rate cut this week. Investors also had to contend with mixed messages from Fed officials after they left their outlook for a single cut in 2026 intact.
Today's show features:

• Stephanie Guild, Chief Investment Officer at Robinhood Markets, on markets, retail investing trends., interest rates and Federal Reserve policy
• Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure Poonam Goyal on the coming CEO change at Lululemon as well as the firm’s latest earnings
• Bloomberg News Space Reporter Sana Pashankar and Bloomberg Intelligence Senior Defense Analyst Wayne Sanders on Friday’s Big Take detailing President Donald Trump’s proposed missile and air defense system that could cost more than $1 trillion
• Andrew Krei, Chief Investment Officer at Crescent Grove Advisors, on Federal Reserve policy and the market outlook

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