The US stock market opened with some volatility on Friday, contrasting with Thursday’s movements.
The S&P 500 had reached 5588 points before retreating and closing with losses.
Thursday’s decline was partly driven by Nvidia, which negatively impacted both the semiconductor industry and broader market sentiment.
The massive gains in the technology sector since the beginning of last year could come under pressure if Nvidia’s stock continues to record price corrections although the enthusiasm for AI could continue to drive the stock upward.
The market could have also seen increased volatility on Friday as derivatives contracts worth approximately $5.5 trillion are set to expire.
Meanwhile, the US economic activity has demonstrated its fastest expansion in over two years this June, according to composite PMI data.
The data also highlighted strong activity in the services sector. However, investors continue to expect an interest rate cut in September and could turn to next week’s numerous data releases for a feel for the next steps in monetary policy including GDP growth and inflation figures.
