The market pullback came amid broadly flat or declining sector performance, with utilities the only group posting gains while industrials and basic materials emerged as the day's laggards.
Netflix shares tumbled almost 5% after Wells Fargo downgraded the streaming giant, citing a slowdown in viewership that raised concerns about the company's growth trajectory.
Space Exploration Technologies (SpaceX) also saw its stock decline after the company announced that its next Starship launch had been pushed back to Sept. 28, later than the previously targeted Sept. 22 date.
Nuclear‑related equities, including NuScale Power, erased the gains they had recorded the previous day, reflecting renewed investor caution in the sector.
On the fixed‑income front, the 10‑year Treasury yield rose five basis points to 5.00%, while gold edged higher 0.33% to $4,354.92 per ounce, as traders weighed the likelihood of a second Federal Reserve rate hike in October.
Crypto‑related stocks bucked the overall weakness, with Coinbase Global surging more than 10% as investors brushed aside a legislative setback after the Clarity Act failed to advance in the Senate.
Bitcoin reclaimed the $80,000 level, underscoring the resilience of digital assets despite broader market softness.
Analysts note that the S&P 500 could close the week in negative territory if the current trend persists, while the market continues to monitor Fed policy signals and emerging concerns over AI safety, which have kept Nvidia’s weekly performance muted.