US open: Stocks lower as tech sell‑off deepens, trade gap widens

(Sharecast News) - Major indices were in the red early on Friday as a selloff in technology shares deepened amid growing concerns over the rising cost of artificialintelligence infrastructure.

As of 1445 BST, the Dow Jones Industrial Average was 0.38% lower at 51,720.78, while the S&P 500 shed 0.51% to 7,320.20, and the Nasdaq Composite came out of the gate 0.98% softer at 25,110.06.

The Dow opened 199.84 points lower on Friday, more than reversing gains recorded in the previous session.

Friday's early moves extended Thursday's weakness, which saw investors rotate out of major tech names, weighing on the Nasdaq and broader global markets. On Thursday, Apple dropped 6% after announcing price increases for its iPad and MacBook ranges, citing higher memory and storage costs, while Microsoft fell more than 3% after revealing plans to raise prices on its Xbox consoles due to surging component expenses.

Other large tech groups also declined, with Alphabet closing nearly 1% lower and Meta Platforms down more than 2%, as worries mounted that rising chip prices could pressure margins across the sector.

On the macro front, the US goods trade deficit widened sharply in May, according to advance figures from the Census Bureau, increasing to $105.8bn from $83bn in April on a seasonally adjusted basis. May's reading marked the widest gap in more than a year and came in well above expectations for a reading of $85bn.

Imports rose 3.6% to $313.4bn, the highest level in 14 months despite recently imposed tariffs, as inbound shipments increased across several categories, including consumer goods and industrial supplies. Exports, on the other hand, fell 5.4% to $207.7bn, the thirdhighest level on record but weighed down by broad price pressures in domestic industries. Shipments of industrial supplies dropped 7% to $82.7bn, while consumer goods exports declined 9.2% to $20.7bn.

Elsewhere, US wholesale inventories edged higher in May, according to the Census Bureau, rising 0.3% month-on-month to $943.9bn. May's increase followed a 0.7% gain in April and came in ahead of expectations for a more subdued 0.2% uptick. It also marked the fourth consecutive monthly increase in wholesale stockpiles, though the pace continued to moderate from March, which saw the strongest growth since August 2022. Durable goods inventories were up 0.3%, after a 0.9% rise in April, while non-durable inventories increased 0.5%, accelerating from a 0.3% gain the previous month. On an annualised basis, wholesale inventories were 4.3% higher.

Still to come, the University of Michigan's June consumer sentiment index will be released at 1500 BST.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $155.51 3.61%

International Business Machines Corporation (CDI) (IBM) $264.23 2.49%

Johnson & Johnson (JNJ) $250.91 2.05%

Visa Inc. (V) $335.10 1.60%

Procter & Gamble Co. (PG) $150.25 1.45%

Merck & Co. Inc. (MRK) $126.83 1.43%

Unitedhealth Group Inc. (UNH) $421.39 1.32%

Coca-Cola Co. (KO) $81.30 1.08%

McDonald's Corp. (MCD) $266.21 1.01%

Travelers Company Inc. (TRV) $320.39 0.85%

Dow Jones - Fallers

Intel Corp. (INTC) $126.00 -7.07%

Caterpillar Inc. (CAT) $1,020.76 -3.84%

Cisco Systems Inc. (CSCO) $115.33 -3.20%

Goldman Sachs Group Inc. (GS) $1,027.06 -2.94%

Apple Inc. (AAPL) $276.64 -1.32%

Nike Inc. (NKE) $40.45 -1.25%

3M Co. (MMM) $167.21 -1.00%

JP Morgan Chase & Co. (JPM) $333.15 -0.91%

Boeing Co. (BA) $218.24 -0.88%

American Express Co. (AXP) $340.45 -0.67%

S&P 500 - Risers

Incyte Corp. (INCY) $115.00 5.59%

Gartner Inc. (IT) $131.88 3.94%

Salesforce.Com Inc. (CRM) $155.51 3.61%

Jack Henry & Associates Inc. (JKHY) $132.60 3.09%

Alexandria Real Estate Equities Inc. (ARE) $55.60 3.02%

Intuit Inc. (INTU) $264.37 2.93%

McCormick & Co. (MKC) $50.06 2.77%

Adobe Systems Inc. (ADBE) $198.62 2.60%

Intercontinental Exchange Inc (ICE) $127.03 2.54%

International Business Machines Corporation (CDI) (IBM) $264.23 2.49%

S&P 500 - Fallers

Seagate Technology Plc (STX) $959.87 -12.32%

Western Digital Corp. (WDC) $619.62 -9.38%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Micron Technology Inc. (MU) $1,136.54 -7.41%

Intel Corp. (INTC) $126.00 -7.07%

Advanced Micro Devices Inc. (AMD) $509.21 -6.50%

Skyworks Solutions Inc. (SWKS) $68.36 -6.13%

Ross Stores Inc. (ROST) $213.34 -5.81%

Analog Devices Inc. (ADI) $397.91 -5.69%

Microchip Technology Inc. (MCHP) $90.16 -5.34%

Nasdaq 100 - Risers

Incyte Corp. (INCY) $113.50 5.59%

NetEase Inc. Ads (NTES) $119.22 3.78%

Intuit Inc. (INTU) $264.65 2.93%

Adobe Systems Inc. (ADBE) $199.30 2.60%

Take-Two Interactive Software Inc. (TTWO) $237.81 2.49%

Dollar Tree Inc (DLTR) $120.50 2.42%

O'Reilly Automotive Inc. (ORLY) $89.13 2.30%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $487.94 2.14%

Workday, Inc. (WDAY) $118.28 2.01%

Netflix Inc. (NFLX) $73.18 1.98%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Seagate Technology Plc (STX) $963.60 -12.32%

Western Digital Corp. (WDC) $622.27 -9.38%

Micron Technology Inc. (MU) $1,141.28 -7.41%

Intel Corp. (INTC) $126.24 -7.07%

Skyworks Solutions Inc. (SWKS) $68.36 -6.13%

Ross Stores Inc. (ROST) $213.60 -5.81%

Analog Devices Inc. (ADI) $397.83 -5.69%

Microchip Technology Inc. (MCHP) $90.35 -5.34%

Broadcom Inc. (AVGO) $366.70 -4.36%