At the close, the Dow Jones Industrial Average had fallen 0.5 percent, the broad S&P 500 index 1.1 percent and the Nasdaq's technology-heavy composite index 1.7 percent.
Despite Wednesday's announcement of a lower interest rate in the US, concerns about overvalued AI stocks still cast a dark shadow over trading.
One of the major technology companies, semiconductor manufacturer Broadcom, led the decline with a drop of 11.4 percent. This despite a quarterly report on Thursday evening that beat expectations.
Investors are also selling off a wide range of other large AI-related stocks, with significant falls in companies such as AMD, Amazon, Intel, Microsoft, Nvidia, Palantir and TSMC.
Cloud services company Oracle continued its slide, now down 4.5 percent, after Thursday's 10.8 percent plunge.
During the week as a whole, the Dow Jones Industrial Average rose 1 percent, while the S&P 500 fell 0.6 percent and the Nasdaq Composite Index fell 1.6 percent.
