Wall Street stocks were mixed on Friday, with the S&P 500 and Dow Jones Industrial Average edging higher while the Nasdaq Composite slipped, as continued selling in technology and artificial intelligence-linked stocks kept markets on track for weekly losses.
The S&P 500 rose 0.1%, while the Nasdaq Composite fell 0.2%. The Dow Jones Industrial Average gained 188 points, or 0.4%. The Nasdaq’s 2.4% weekly decline compared with the S&P 500’s 0.9% fall highlighted the pressure on technology-heavy stocks. While the Dow and S&P 500 attempted a modest recovery on Friday, continued weakness in chipmakers and AI-linked companies pointed to lingering caution among investors.
Despite Friday’s modest gains in the broader market, technology stocks remained under pressure amid concerns about intensifying competition from China in the semiconductor industry and uncertainty over the outlook for artificial intelligence-related investments.
The S&P 500 was down 0.9% for the week heading into Friday’s session, while the Nasdaq had declined 2.4%.
Semiconductor stocks continued to slide, with the VanEck Semiconductor ETF falling more than 1% on Friday. Micron Technology, Advanced Micro Devices and Sandisk were among the stocks leading the decline.
The semiconductor ETF was down nearly 9% for the week heading into Friday’s open, reflecting investor concerns about competition from Chinese chipmakers.
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The weakness in semiconductor shares, along with losses in other AI-linked stocks, weighed on the broader technology sector and put the S&P 500 on course for a weekly decline.
Investors have been reassessing valuations and growth expectations for companies associated with the AI boom, with semiconductor makers particularly exposed to changes in competition, demand and spending on computing infrastructure.
Tesla shares gained 1% after the electric vehicle maker unveiled its next-generation Roadster. However, the model is not expected to enter production until 2028, leaving investors with a long wait before the vehicle can contribute to deliveries or revenue. The gains in Tesla provided some support to the market, but were not enough to offset broader weakness among semiconductor and other AI-related stocks.
Beyond technology, investors were also weighing hotter-than-expected inflation data and elevated energy prices following the US-Iran war.
Wholesale inflation recorded its biggest increase since 2022 during the week, while consumer inflation remained well above the Federal Reserve’s 2% target.
Persistent inflation could complicate the central bank’s decisions on interest rates, particularly if rising energy costs feed into broader prices. The prospect of tighter monetary policy for longer can weigh on equities by raising borrowing costs and putting pressure on valuations.
For technology stocks, which often derive a significant portion of their valuations from expected future growth, higher interest rates can be particularly challenging.