$1.3 trillion erased from Wall Street: Here's what slowed down AI rally

Key points

• Tech stocks, particularly semiconductors, experienced a significant downturn Friday, driven by investor caution over AI valuations and robust US jobs data.
• The PHLX Semiconductor Index saw its steepest drop since March 2020, erasing billions in market value.
• This retreat follows a period of record highs, with strong employment figures fueling concerns about interest rate cuts.