Wall Street Declines as Tech Stocks Slump and Trade Tensions Rise

Wall Street indices declined on Friday, with technology stocks pulling down the Nasdaq and S&P 500 after the markets had previously hit record highs. Investors reacted to a combination of disappointing economic indicators, including weaker-than-expected July retail sales data from the U.S. Department of Commerce Census Bureau and a preliminary University of Michigan consumer sentiment survey that fell below expectations.

Market volatility increased due to geopolitical instability in the Middle East. Attacks on ships in the Strait of Hormuz and a statement from the Government of the United States regarding a potential indefinite naval blockade of Iran contributed to the downturn. While Broadcom and Applied Materials suffered significant losses, Reddit shares surged over 12% following its addition to the S&P 500 index.

Trade policy also influenced specific sectors. Drone manufacturers Red Cat and Unusual Machines saw their values increase after President Donald Trump announced plans to impose tariffs on drone imports and their components.