Traders work on the floor of the New York Stock Exchange (NYSE) on Nov. 13, 2025 in New York City.

Spencer Platt | Getty Images

The Dow Jones Industrial Average fell while the Nasdaq Composite rebounded on Friday, a day after Wall Street notched its worst day in more than a month.

The blue-chip Dow lost 233 points, or 0.5%. The Nasdaq rose 0.6%, on pace to snap a three-day losing streak. The S&P 500 traded up 0.3%.

The tech trade gained some ground after coming under pressure in recent days. Nvidia and Advanced Micro Devices both reversed course from their drop seen in the previous session, as did Palantir Technologies and Tesla, both of which saw losses of more than 6% in the prior day. The Technology Select Sector SPDR Fund (XLK) was up 0.5%, making up some of its 2% decline from Thursday.

Major U.S. indexes on Thursday posted their worst one-day performance since Oct. 10. The 30-stock Dow lost about 800 points, taking back gains seen in Wednesday's session when it crossed the 48,000 level. The Nasdaq dropped more than 2%, as technology giants came away battered. Those losses have now put the tech-heavy Nasdaq on pace to snap its seven-week win streak with a week-to-date fall of 0.5%. The S&P 500 is little changed on the week, while the Dow is higher by 0.2%.

Concerns about the artificial intelligence trade have emerged more seriously this week, with the recent wipeout in once-hot cloud stock Oracle further spooking investors about elevated tech valuations, a massive surge in debt financing and soaring AI capex plans. To be sure, Oracle's growth is uniquely more reliant on its cloud deal with OpenAI and the company has far less cash compared to hyperscalers.

"A lot of the market is underpinned by the AI trade," said Yung-Yu Ma, PNC Asset Management chief investment strategist. "This pullback is a healthy pullback here. And you have this push and pull in the market, you have this reset of investor sentiment but you also have a lot of broken failed breakouts and broken charts. And that does take a while to rebuild."

Mounting unease about the Federal Reserve's upcoming interest rate decision also added pressure to the market this week. Traders are now pricing in a more than 51% chance that the central bank will cut its benchmark overnight borrowing rate by a quarter percentage point during their December meeting, which is lower than the 62.9% likelihood that markets priced in earlier this week and 95.5% chance a month ago, per the CME FedWatch Tool.

Investors are counting on another rate cut in December to revive the economy, as well as risk-taking on Wall Street. But some Fed members are growing concerned that inflation is too sticky to warrant another rate decrease this year.

The U.S. government shutdown, which was the longest in history, ended Wednesday evening after stretching on for more than six weeks. That development had been expected to end a period of time where investors were operating without important economic data. Instead, it has raised new questions. White House press secretary Karoline Leavitt suggested that some economic data that was due out during the impasse might never be released.