U.S. stocks ended lower Friday as Brent crude settled above $116 a barrel, leaving investors to weigh a sharp energy-price rise alongside the cost of financing artificial intelligence expansion.
The S&P 500 lost 39.75 points, or 0.5%, to close at 7,623.68. The Dow Jones Industrial Average fell 652.82 points, or 1.2%, to 52,215.16, and the Nasdaq Composite slipped 53.52 points, or 0.2%, to 25,955.34, the Associated Press reported. The news agency put Brent crude’s settlement at $116.72 a barrel, up 3.1%.
Several prominent technology shares rose despite the broad decline. Micron Technology gained 2.5%, Intel advanced 1.7%, Microsoft added 0.7% and Advanced Micro Devices rose 1.7%, AP reported. Nearly three-quarters of S&P 500 stocks closed lower, according to the news agency.
Angelo Kourkafas, senior global strategist at Edward Jones, said investors were scrutinizing the economics of AI projects. “Investors appear increasingly focused on the economics of AI, particularly the substantial upfront costs required to build AI infrastructure,” he said in a research note, AP reported. The agency also cited more expensive borrowing and uncertainty over when those investments may pay off.
Meta reported $34.91 billion in capital expenditures for the third quarter of 2026 and forecast $135 billion to $145 billion for 2026, including principal payments on finance leases. The company said AI projects may take longer to pay off than investments in its core business. EconoTimes has previously covered investor concerns about AI valuations and infrastructure financing.
Higher oil prices lifted energy shares: Chevron rose 2.9% and ConocoPhillips gained 3.6%, AP reported. The news agency said rising energy prices were also adding to costs for gasoline, food and clothing.
The Federal Reserve’s two-day meeting is scheduled for Oct. 27-28, with its rate decision due Oct. 28 at 2 p.m. ET. The Bureau of Economic Analysis is scheduled to release September Personal Income and Outlays, which includes the personal consumption expenditures price index, on Oct. 29 at 8:30 a.m. EDT.
