The S&P 500 and Nasdaq post highest weekly losses since April 

U.S. stocks dropped on Friday as Wall Street wrapped up a week marked by significant profit-taking across market spectrum. 

The S&P 500 and Nasdaq experienced their largest weekly losses since April, falling 1.97% and 3.65%, respectively. The six-week winning streak ended with the tech-heavy Nasdaq. Conversely, the Russell 2000, which focuses on small caps, increased by 1.68%, while the Dow gained 0.72%. 

The S&P 500 closed at 5,505 index points, down 0.71%. The Nasdaq Composite closed at 17,726.94 index points, down 0.81%. At 40,287.53 index points, the Dow Jones Industrial Average dropped 377.49 points, or 0.93%. 

The last trading session was another day of general market falls, with the Russell 2000 down 0.63%. However, it seems that the weekly trend is moving toward stocks that are thought to benefit more from the Federal Reserve’s interest rate reductions, such as small caps. 

Following a significant IT disruption that affected businesses worldwide, CrowdStrike fell 11.1%. The Nasdaq and the New York Stock Exchange stated transactions on these exchanges were unaffected.

The Nasdaq’s poor performance this week may be explained by a move away from mega-cap artificial intelligence benefactors. Similarly, with a 5.1% decline, the information technology industry led the overall S&P 500 lower. 

Investors are withdrawing their funds from large tech stocks and putting them in other sectors due to their strong performance. Some market analysts were earlier concerned that the surge was becoming overly reliant on a small number of large tech stocks, but this divergence has given them hope. In the meantime, smaller and more cyclically oriented firms have benefited from growing optimism regarding impending interest rate reductions from the Fed.