Tech stocks are dragging down Wall Street this week as investors flee once-hot shares.

Major stock indexes closed sharply lower and bitcoin plunged to near $62,000 Thursday amid broad risk-off sentiment, as investors weighed the latest Big Tech earnings and downbeat labor data.

It’s also widened to include the industry’s Wall Street backers, from lenders to private equity owners for whom software firms have been popular targets. More than $17.7 billion of US tech company loans in a Bloomberg index dropped to distressed trading levels during the past four weeks.

US indices climb after brutal week for tech. Dow leads with fresh highs, but Nasdaq still struggles below key moving averages. Buyers testing, not chasing.

SaaS companies took major hits: Microsoft closed down 2.87%, SAP was down 3.29% this morning on the German market, Salesforce lost 6.85% yesterday and was further down in overnight trading, ServiceNow was down 6.97% yesterday and was marginally lower overnight, also.

Consumer staples and chemicals are also among AI-resistant firms, JonesTrading’s O’Rourke noted. The staples group, composed of companies such as Dollar General Corp. and Dollar Tree Inc., has fared the best among the S&P 500 sectors this week.

Friday morning's moves followed a rough day on Wall Street, with the market once again bogged down by technology stocks.

US stocks got hit as oil investors skimmed profits in the tech sector and concerns rose over higher oil prices.

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