The tech-heavy Nasdaq Composite Index fell 1.9 percent. The Dow Jones Industrial Average and the broad-based S&P 500 also fell, down 0.8 percent and 1.1 percent, respectively.
The decline was evident among several stocks belonging to companies operating in the AI sector. Semiconductor giants Nvidia and AMD lost 3.7 and 7.3 percent, respectively. Software and analytics company Palantir fell 6.8 percent, while cloud services company Oracle saw a decline of 2.6 percent.
The turbulence, where many tech stocks have had a yo-yo movement during the week, is rooted in investors' concerns about an AI bubble with overvalued companies.
Snap surged 9.6 percent after the Snapchat owner delivered a strong quarterly report and announced a collaboration with Perplexity AI.
Meanwhile, a poor jobs report weighed on the stock market. The number of layoffs in the US amounted to 153,000 in October, almost three times as many as in September. This is the worst figure for October since 2003, according to Bloomberg.
