All three major US indices finished significantly lower, with the tech-heavy Nasdaq Composite suffering the steepest decline.
The Nasdaq Composite plummeted 1.7% to close at 23,195.17, marking its worst day in three weeks.
The S&P 500 Index fell 1.1% to 6,827.41, retreating from its record close set just the day before.
The Dow Jones Industrial Average dropped 0.5% to 48,458.05, giving back a portion of the record-setting rally it enjoyed earlier in the week.
The selling pressure was largely catalyzed by chip and cloud computing companies. Broadcom (AVGO) was a major drag on the market, tumbling over 11% despite strong earnings, as its caution regarding lower margins on custom AI work spooked investors.
This followed Thursday's double-digit decline in Oracle (ORCL), underscoring a prevailing concern that the massive capital expenditures required for the AI buildout may not immediately translate into the high margins investors have come to expect.
