Wall Street Opens Lower as AI, Geopolitics, and Earnings Weigh

All three major US indices opened lower Friday. The Dow fell 0.12%, the S&P 500 dropped 0.16%, and the Nasdaq led losses with a 0.44% decline.

This follows a brutal session on Thursday. The S&P 500 closed at 6,832.76, down 1.6%. The Dow finished at 49,451.98, losing 1.3%, while the Nasdaq plunged 2% to 22,597.15.

Markets are grappling with three major headwinds: questions over AI profitability, geopolitical risk in the Middle East, and mixed tech earnings. Cisco shares tumbled 12.3% on profitability concerns. AppLovin plummeted 19.7%.

Geopolitical tensions around the Strait of Hormuz added further pressure. President Trump announced the US Navy would escort tankers through the strait, but the relief was short-lived.

Sector-wise, consumer staples, discretionary, health care, materials, and utilities all led losses. Energy stocks saw modest gains.