The Major Markets had a difficult week last week as rising inflation, surging oil prices, and concerns about artificial intelligence spending weighed on investor sentiment. The Dow Jones was the lone winner as it gained 0.7%. Meanwhile, the Nasdaq, Russell 2000, S&P 500 and the international indices all closed lower.

Technology stocks led the selloff, particularly semiconductor companies. The Philadelphia Semiconductor Index plunged 11.4% for the week as investors questioned whether the massive investment in AI infrastructure can generate sufficient returns, especially as companies take on more debt to fund expansion.

Inflation added to the pressure. September consumer inflation accelerated to 3.7% annually, while producer prices also came in hotter than expected. Meanwhile, escalating geopolitical tensions pushed oil above $100 per barrel, raising concerns about additional inflation and the Federal Reserve’s next move.

That said, there were some bright spots. At the sector level, we see that the majority of the sectors closed positive last week. The S&P 500 Equal Weight Index actually added half a percent last week. This showed the resiliency of the overall market despite the concerns of technology.