Wall Street Slides as Tech Sell-Off Drags Nasdaq to Its Lowest Level Since November
US equity markets ended sharply lower on Friday, December 12, as renewed selling pressure in technology stocks pushed the Nasdaq Composite to its weakest close in more than two weeks. Investors trimmed risk exposure after a string of cautious corporate outlooks reignited concerns about margins, earnings visibility, and near-term growth prospects in the tech sector.
The pullback capped a volatile week for Wall Street, highlighting a growing divergence between technology-heavy indices and more defensively positioned segments of the market.
Technology Stocks Lead Wall Street Lower in Broad-Based Decline
The Nasdaq Composite fell 1.69 percent to close at 23,195.17, its lowest level since November 25, as heavyweight technology and semiconductor stocks came under pressure. The S&P 500 declined 1.07 percent to 6,827.41, while the Dow Jones Industrial Average slipped a comparatively modest 0.51 percent to 48,458.05.
The sharper fall in the Nasdaq reflected its higher exposure to growth and technology names, which have driven much of the market’s gains in recent months. Friday’s move suggested investors are becoming more sensitive to earnings risks and valuation concerns, particularly in sectors where expectations remain elevated.
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Semiconductor Weakness Intensifies After Margin Warnings
Chipmakers were at the centre of the sell-off. The Philadelphia Semiconductor Index plunged 5.1 percent, marking its worst session since October 10, with every constituent ending the day in the red.
Broadcom shares tumbled about 11 percent after the company warned of slimmer margins ahead, unsettling investors who had priced in sustained profitability across the sector. NVIDIA declined 3.3 percent, adding to pressure on the broader semiconductor complex.
The sharp reaction underscores how sensitive the market remains to guidance from key technology suppliers, especially as demand visibility becomes less certain following a strong multi-quarter rally.
Oracle and Big Tech Add to Nasdaq Pressure
Software and enterprise technology stocks also weighed on sentiment. Oracle shares fell 4.5 percent, extending losses from the previous session after issuing a weaker-than-expected financial forecast.
The decline reinforced investor caution around enterprise spending trends and the pace at which large corporate customers are committing to new technology investments. Together with semiconductor losses, these moves compounded the drag on the Nasdaq and the broader technology sector.
Stock-Specific Moves Show Selective Investor Appetite
Despite the broad market weakness, some individual stocks moved sharply higher on company-specific news. Lululemon Athletica surged 9.6 percent after raising its full-year profit forecast and announcing that its chief executive officer would step down, a combination investors interpreted as supportive of near-term earnings momentum and strategic change.
Bristol-Myers Squibb also advanced after Guggenheim Securities upgraded the stock to “buy,” reflecting continued interest in select defensive and healthcare names.
On the downside, Roblox fell 6.2 percent after JPMorgan downgraded the stock to “neutral,” highlighting how rating changes can still trigger sharp moves in high-growth names.
Sector Performance Highlights Defensive Rotation
Sectoral performance on Friday pointed to a cautious shift in investor positioning. Technology stocks led losses, declining 2.9 percent on the day, while consumer staples gained 0.9 percent, emerging as one of the few pockets of strength.
The rotation into defensive sectors suggests investors are seeking stability amid uncertainty around growth, earnings margins, and the outlook for interest rates. Such moves often reflect a short-term reassessment of risk rather than a wholesale exit from equities.
Weekly Performance Shows Mixed Signals Across Indices
For the week, the S&P 500 slipped 0.63 percent, while the Nasdaq fell a steeper 1.62 percent, underscoring the underperformance of growth stocks. In contrast, the Dow Jones Industrial Average posted a weekly gain of 1.05 percent, supported by its heavier weighting toward industrials, financials, and defensive names.
The divergence highlights how market leadership has become more uneven, with investors increasingly discriminating between sectors and business models.
What the Nasdaq’s Drop Signals for Market Sentiment
The Nasdaq’s slide to its lowest level since late November is likely to keep investors cautious in the near term. While broader economic data have not deteriorated sharply, the market is clearly responding to signals from companies themselves, particularly around margins and future demand.
Analysts note that after a strong rally earlier in the quarter, technology stocks were vulnerable to profit-taking, especially in the absence of fresh positive catalysts.
What Investors Will Watch Next
Looking ahead, investors will focus on upcoming earnings updates, corporate guidance, and macroeconomic signals that could clarify whether the latest sell-off is a temporary correction or the start of a more sustained rotation away from growth stocks.
For now, Wall Street’s latest decline serves as a reminder that even in a broadly resilient market, leadership can shift quickly when expectations collide with more cautious corporate outlooks.
