NEW YORK (AP) — Technology stocks are dragging down the market as Friday as Wall Street closes out a holiday-shortened week.

The S&P 500 fell 1.6%, with more than 80% of stocks in the benchmark index losing ground. The benchmark index was managing to hold onto a modest gain for the week.

The Dow Jones Industrial Average fell 475 points, or 1.1%, to 42,850 as of 11:35 a.m. Eastern time. The Nasdaq composite fell 2%.

Technology stocks were the biggest drag on the market Friday. Semiconductor giant Nvidia slumped 2.4%. Its enormous valuation gives it an outsize influence on indexes. Other Big Tech stocks losing ground included Microsoft, with a 1.9% decline.

A wide range of retailers also fell. Amazon fell 2% and Best Buy slipped 1%. The sector is being closely watched for clues on how it performed during the holiday shopping season.

Energy was the only sector within the S&P 500 rising. It gained 0.4% as crude oil prices rose 1.2%.

Investors don’t have much in the way of corporate or economic updates to review as the market moves closer to another standout annual finish. The S&P 500 is on track for a gain of just under 25% in 2024. That would mark a second consecutive yearly gain of more than 20%, the first time that has happened since 1997-1998.

The gains have been driven partly by upbeat economic data showing that consumers continued spending and the labor market remained strong. Inflation, while still high, has also been steadily easing.

A report on Friday showed that sales and inventory estimates for the wholesales trade industry fell 0.2% in November, following a slight gain in October. That weaker-than-expected report follows an update on the labor market Thursday that showed unemployment benefits held steady last week.

The stream of upbeat economic data and easing inflation helped prompt a reversal in the Federal Reserve’s interest rate policy this year. Expectations for interest rate cuts also helped drive market gains. The central bank recently delivered its third cut to interest rates in 2024.

Even though Inflation has come closer to the central bank’s target of 2%, it remains stubbornly above that mark and worries about it heating up again have tempered the forecast for more interest rate cuts.

Inflation concerns have added to uncertainties heading into 2025, which include the labor market’s path ahead and shifting economic policies under incoming President Donald Trump. Worries have risen that Trump’s preference for tariffs and other policies could lead to higher inflation, a bigger U.S. government debt and difficulties for global trade.

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