US stock indexes finished mixed on Friday as software and cybersecurity shares declined on AI disruption fears, while chipmakers and optical component manufacturers rallied on infrastructure demand.

Key Points

• The Nasdaq 100 rose 0.14% to a six-week high, while the S&P 500 and Dow Jones Industrial Average fell 0.11% and 0.56%, respectively.
• Software and cybersecurity stocks faced significant pressure, with Cloudflare dropping 13% and ServiceNow falling over 7% amid concerns regarding new AI models.
• Chipmakers and optical component firms saw gains, led by Marvell Technology rising over 7% and Broadcom climbing more than 4%.
• US consumer sentiment hit a record low of 47.6, while March CPI rose 3.3% year-over-year, slightly below market expectations.
• Geopolitical tensions persist as the Strait of Hormuz remains largely closed, trapping over 800 vessels in the Persian Gulf.

Why it Matters

Market volatility remains elevated as investors weigh cooling inflation data against geopolitical instability and shifting sentiment toward artificial intelligence. These conflicting signals complicate the outlook for Federal Reserve policy and broader economic stability in the coming months.