The benchmark S&P 500 is muted as worries about cracks in the AI trade pressured semiconductor stocks, while gains in banks limited overall declines.
The S&P 500 information technology was the biggest drag on the index, down 0.9 per cent. Nvidia-backed CoreWeave slipped 7.6 per cent on lingering concerns about the data centre operator's debt load. Its bonds sold off sharply this week, pushing yields to above 15 per cent.
Other neocloud firms Nebius Group and Iren dipped over 5.5 per cent each.
Semiconductors lost ground once again, with Micron Technology down 3.9 per cent and Advanced Micro Devices off 3.3 per cent. The broader chips index lost 1.8 per cent, set for the steepest 8-session percentage decline since the "Liberation Day" selloff in April 2025.
Most megacap stocks were also lower, with Alphabet and Meta down one per cent each and weighing on the communication services sector. These losses pressured the Nasdaq.
A pullback in memory chip stocks earlier this week on rising fears of Chinese competition and concerns over CoreWeave's debt "provided investors with an excuse to cut their exposure to all AI-adjacent companies," said David Morrison, senior market analyst at Trade Nation.
"There's still some caution out there. If it is just a touch of profit-taking after yesterday's rebound, or something more serious... time will tell," said Morrison.
Adding to concerns around AI financing, some current Anthropic investors and prospective investors are weighing a lower valuation for the company in its upcoming IPO, Reuters reported, citing people familiar with the matter.
In early trading on Friday, the Dow Jones Industrial Average rose 221.78 points, or 0.43 per cent, to 52,401.89, the S&P 500 lost 7.30 points, or 0.09 per cent, to 7,736.76 and the Nasdaq Composite lost 185.88 points, or 0.70 per cent, to 26,527.14.
On the flip side, most other S&P 500 sectors rose. Materials was the biggest percentage gainer, rising 1.6 per cent, while financials rose 1.1 per cent.
Gains in Goldman Sachs and JPMorgan Chase lifted the Dow to its highest level in over a month.
Tesla gained marginally after unveiling a redesigned Roadster, powered by rocket-style thrusters, developed in collaboration with SpaceX.
The S&P 500 and the Nasdaq were set to post weekly losses as the AI-led rout, mixed bank earnings and inflation data weighed on sentiment through the week. The Dow, meanwhile, was poised for a weekly advance.
Hotter-than-expected consumer and producer inflation reports this week have confirmed that price pressures are extending beyond energy products.
Federal Reserve Chair Kevin Warsh also noted that a spending surge was boosting inflation, but the US economy remained resilient and benefited from an AI-driven investment boom.
Markets increasingly expect the Fed to keep interest rates unchanged this month.
Among others, Varonis Systems climbed 2.8 per cent as Thoma Bravo's Proofpoint agreed to buy the data security firm in a $US6.3 billion ($A9.1 billion) all-cash deal.
Netflix appointed former Disney executive Peter Rice as chief content officer on Thursday. Its shares were down 2.3 per cent.
Advancing issues outnumbered decliners by a 1.87-to-1 ratio on the NYSE and by a 1.12-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and no new lows, while the Nasdaq Composite recorded 40 new highs and 119 new lows.