Technology stocks faced broad losses Friday as investors retreated from both software and semiconductor shares.
The two sectors have rarely moved together this year, but they fell in unison during the latest session.
Fears about artificial intelligence spending and interest rates drove the decline.
Software companies, which had outperformed chipmakers for much of 2025, gave back recent gains.
Semiconductor stocks also dropped as concerns about AI demand weighed on the sector.
The selloff marked a shift from the divergent trading patterns seen throughout the year.
Rising bond yields added pressure on growth stocks, which are sensitive to borrowing costs.
Investors questioned whether heavy AI investments will deliver near-term profits.
The joint decline underscored how connected the two sectors have become through AI.
Neither group found shelter as selling spread across the tech landscape.
Market watchers now look for signs of stabilization in upcoming earnings reports.
