Wall Street closes lower to end rocky week

Wall Street's main indexes experienced a decline on Friday, despite a steadier performance from technology shares and the market's focus on upcoming corporate earnings and the Federal Reserve meeting. The Nasdaq Composite saw a slight drop following its most significant one-day decline since June, driven by concerns over financing costs for AI investments.

The S&P 500 technology sector ended the day with a 0.35% gain. Most S&P 500 sectors experienced a decline, with consumer staples, consumer discretionary, and financial sectors falling by more than 1%. In the upcoming week, approximately one-third of S&P 500 companies are scheduled to report quarterly results, including major AI players like Alphabet, Microsoft, and Amazon.

Analysts express concern that AI data center investments may fall short of projections. The Dow Jones Industrial Average closed at 52,215.16, down 1.23%, while the S&P 500 fell 0.52% to 7,623.68, and the Nasdaq Composite dropped 0.21% to 25,955.34. Telecommunications stocks suffered, as SpaceX sought numerous cell sites for a new wireless carrier, causing AT&T, T-Mobile, and Verizon shares to plummet nearly 8%.

Despite the overall market downturn, the energy sector saw a 2.5% increase, reaching a record high, after Houthi attacks in Saudi Arabia raised concerns about Middle East energy supplies. American Express shares fell 3.7% due to a profit forecast revision and workforce reductions. Data from the University of Michigan indicated a slight decline in US consumer sentiment in October, as energy prices influenced households' economic outlook.

The market will closely monitor earnings reports and Federal Reserve policy decisions during the upcoming week, along with the upcoming US midterm elections.