Risk-off sentiment dominated Wall Street on Friday, with selling pressure in AI-linked names intensifying and pushing technology stocks toward their worst week since April.

By midday in New York, the Nasdaq 100 slumped 1.9%, extending its weekly losses to nearly 5%, while the S&P 500 fell 1.2%, down roughly 3% for the week.

Investor anxiety over the labor market and the broader economy worsened after the University of Michigan's consumer sentiment index sank to its lowest level since June 2022.

Notably, the subindex tracking current economic conditions dropped to the worst reading on record since the survey began in 1951.

Nvidia Corp. (NASDAQ:NVDA) fell another 4%, bringing weekly losses above 10%, alongside other high-flying names of the AI boom such as Palantir Technologies Inc. (NASDAQ:PLTR) and Advanced Micro Devices Inc. (NASDAQ:AMD).

Overall, semiconductor stocks, tracked by the iShares Semiconductor ETF (NASDAQ:SOXX), have dropped 7.4% this week.

The CBOE Volatility Index (VIX), Wall Street's so-called fear gauge, surged 15% to above 22, nearing its highest close ...