Technology stocks fell further on Friday as investors focused on earnings in the coming week following a disappointing batch of results earlier this week.

The Nasdaq 100 fell 0.3%, extending losses from Thursday, when technology stocks fell on lower-than-expected Netflix sales and an adjusted earnings miss from Tesla.

The 10-year note's yield fell one basis point, bringing weekly gains to less than a point. American Express dropped 3.5% after missing revenue estimates. The yen fell on speculation that the Bank of Japan will not change its yield curve control programme. Meanwhile, Alphabet and Exxon Mobil rose, while Meta Platforms fell, ahead of the companies' earnings next week.

Investors were bracing for a volatile session on Friday as a flood of options expired prior to the Nasdaq 100's out-of-cycle rebalancing. The index shuffle, which goes into effect on Monday, aims to reduce the dominance of megacaps while increasing the presence of smaller members.

In equities, the main question remains whether the rally in a few megacap stocks and the hype surrounding artificial intelligence will last. The S&P 500 has already outperformed most forecasts for where it will end the year, confounding strategists who believe 2023 will be another bad year for markets heading into recession.