Dow Jones stock markets retreat 0.51% as Broadcom Oracle earnings trigger tech sell-off Fed cuts spur rotation

U.S. equity markets experienced a sharp decline on Friday, , marking a challenging week for technology stocks. The Dow Jones Industrial Average (^DJI) retreated 0.51%, [bucking the broader trend as it posted a 1% weekly gain](https://example.com/stock-market-today-dow-s-p-500-nasdaq-sink-to-cap-brutal-week-for-tech-stocks). The sell-off accelerated following mixed earnings reports from key players in the AI sector, including Broadcom (AVGO) and Oracle (ORCL), which triggered investor concerns over valuation sustainability and margin pressures. Treasury yields rose, , reflecting shifting capital flows toward fixed-income assets. ## Earnings and Valuation Concerns The AI-driven rally faced renewed skepticism after Broadcom reported a 10% intraday decline despite beating quarterly earnings estimates. , , highlighted growing competition in the AI hardware market. [Analysts noted that increased supply](https://example.com/wall-street-whiplash-hits-trend-chasers-in-year-of-endless-noise) could erode pricing power, reverting to traditional semiconductor dynamics.

Oracle, another tech bellwether, [fell 4.5% on Friday](https://example.com/if-google-wins-ai-race-nvidia-is-in-trouble-says-author-of-jensen-huang-biography) after missing revenue expectations, compounding worries about the sector's profitability. ## Fed Policy and Market Rotation The Federal Reserve's third rate cut of 2025, announced earlier in the week, bolstered cyclical sectors and gold prices (GC=F), . However, the market's rotation away from growth stocks intensified as investors sought value names amid fears of a slowdown in AI adoption. The move was exacerbated by reports of delayed infrastructure projects, such as Oracle's OpenAI data centers, which were [pushed to 2028](https://example.com/attorney-general-ken-paxton-informs-texans-on-how-to-claim-funds-from-700-million-google-settlement). ## Outlook and Strategic Shifts UBS strategists maintained a bullish stance on U.S. equities for 2026, citing resilient economic growth and AI investment as key drivers. . Meanwhile, , reflecting broader market caution. ['s reported consideration](https://example.com/stocks-retreat-as-investors-sell-tech-trump-leans-toward-warsh-or-hassett-for-next-fed-chair) of Kevin Hassett and Kevin Warsh for the next Federal Reserve chair further underscored uncertainty in monetary policy expectations. ## Sector Divergence and Regulatory Developments While tech stocks struggled, non-tech sectors and gold benefited from the Fed's accommodative stance. Cannabis equities surged on speculation of marijuana reclassification, with Tilray (TLRY) and Canopy Growth (CGC) rising 35% and 25%, respectively. Separately, a $700 million antitrust settlement involving Google's Play Store distribution practices began distributing refunds to affected consumers via PayPal and Venmo .