Federal Reserve official Collins signals the need to continue tightening monetary policy, stating that combating inflation takes priority over housing market strains.

According to data from the BIT Stock Platform, all three major U.S. stock indexes turned lower: the Nasdaq fell more than 1%, the S&P 500 dropped 0.6%, and the Dow Jones Industrial Average declined 0.06%. The Philadelphia Semiconductor Index extended its loss to 4.2%, with AMD (AMD) slumping over 8%, Marvell Technology (MRVL), Broadcom (AVGO), and Arm (ARM) falling more than 5%, Intel (INTC) down 4.4%, Micron Technology (MU) declining 4%, and NVIDIA (NVDA) dropping 2.5%.

Chicago Federal Reserve Chair Austan Goolsbee told CNBC in an interview Friday that even as oil prices fall sharply, persistent issues with refining capacity will keep diesel and jet fuel prices elevated. He noted inflation is now spreading to sectors not driven by rising energy costs, adding the Federal Reserve cannot overlook inflation if demand overheats. Goolsbee cited data centers as a factor pushing up prices, while services inflation and rising healthcare costs give a clear impression they will not cool quickly in the near term. The Chicago Fed chief added the central bank is currently not on track to hit its 2% inflation target, and needs to address this issue to prevent demand from overheating; if data shows inflation is worsening, it will prompt the Fed to take more aggressive policy action.

Dallas Fed President Lorie Logan said during a speech at the Dallas Fed's Bank Funding Conference on Friday that despite several rounds of interest rate fluctuations, the U.S. Treasury market is functioning "very well" and banks have improved their ability to access emergency funding over the past three years. That said, the Federal Reserve should take steps to strengthen its support tools in both areas. "Especially in an economic environment where it appears necessary to tighten policy, I think it would be prudent for the FOMC to strengthen its tools to support market functioning without providing unnecessary economic stimulus," Logan said.

According to data from the BIT Stock Platform, the Philadelphia Semiconductor Index fell more than 3%. Among its constituent stocks, AMD dropped over 6%, while Coherent, Broadcom, and Marvell Technology each declined around 5%. Intel fell more than 3%, and NVIDIA fell over 2%.

According to data from the BIT stock platform, the S&P 500 index gave up its opening gains, the Nasdaq 100 index fell 0.5%, and the Dow Jones Industrial Average is now up 0.2%. Nvidia (NVDA.O) erased its early opening gains to trade 1.3% lower.

According to CNBC, Jensen Huang stepping down as NVIDIA CEO, combined with the Democrats winning control of both chambers of Congress in the U.S. midterm elections, may make corporate executives more cautious about publicly aligning themselves with the White House. CNBC reporter Steve Liesman argues that corporate direct involvement in policy-making could narrow, and large tech firms may face stricter congressional scrutiny and regulatory pressure. Midterm election surveys show 90% of surveyed voters view corruption as a key or major issue influencing their votes, one percentage point higher than the share citing the cost of living. Another pre-election survey found 93% of respondents oppose elected officials including the president and members of Congress holding or trading stocks of federal government contractors, while 89% object to the president’s family members securing government contracts. Liesman cites NVIDIA as an example, noting the firm once donated alongside other large corporations to the White House Ballroom project. This controversy has drawn increased attention to the relationship between tech executives and the White House, as well as corporate influence over chip export policies. Democratic Senator Elizabeth Warren has called on Congress to pass bipartisan bills including the AI Overwatch Act to restrict China’s access to advanced U.S. AI technology. Warren argues that large tech company CEOs cannot be relied on to prioritize national security over corporate profits. However, even with control of both chambers of Congress, Democrats may not secure the votes needed to override a presidential veto. Liesman suggests a more imminent shift could be corporate executives voluntarily scaling back public outreach to the White House; some Republican lawmakers from swing states may also cooperate with Democrats on issues like data center construction, environmental protection, and corporate regulation.