The major averages reversed course and fell into the red as profit-taking persists in the technology and AI space. The Dow Jones Industrial Average finished down 245 points, or 0.51%, to settle at 48,458 after scoring a new intraday all-time high earlier in the session.

The S&P 500 73 points or 1% to end the day at 6,827. The Nasdaq Composite slid 398 points or 1.69% to 23,195. For the week, the S&P 500 and Nasdaq fell 0.6% and 1.6% respectively. The Dow held up, rising 1.1% on the week.

The weakness once again started in the tech space with Broadcom down 11% following strong earnings. Guidance was also strong, but investors seemed to expect more from the AI company. Oracle fell 4% on rumors they may cut back on AI spending or push back some projects. The company denied the claims, but the stock still closed lower. Nvidia also fell 3% while AMD was down 4% and Micron was down 6%.

Outside the tech space, the markets were calmer. The diamond of the day went to Lululemon up 9% on better than expected earnings.  Visa, UnitedHealth Group and GE performed well. Defensive stocks held up today.

Interest rates rose today as Chicago Federal Reserve President Austan Goolsbee warned against the central bank further lowering interest rates after making three cuts since September. The 10-year Treasury note rose more than 4 basis points to 4.18%, while the 2-year Treasury yield fell a basis point to 3.52%. The 30-year Treasury bond yield jumped more than 6 basis points to 4.85%.

In the commodity space, oil was quiet. Gold was also quiet while the crypto currencies pulled back with the tech space.

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