The Nasdaq 100 declined on Friday, marking its first back-to-back weekly loss since late March, pressured by a surge in crude oil prices and a broad selloff in technology shares.
The tech-heavy index fell 1.2% on the day.
Despite issuing a strong revenue forecast, Intel Corp shares reversed earlier gains to close sharply lower, tumbling 7.9%.
The S&P 500 Index edged up 0.1% on the day but still posted a weekly decline of 0.6%. The Dow Jones Industrial Average gained 0.5%.
The Philadelphia Stock Exchange Semiconductor Index slumped another 4.3% on Friday, bringing its July losses to nearly 17%, on pace for its worst monthly performance since June 2022.
Sandisk Corp plummeted 10.8% on Friday, making it one of the worst-performing stocks in the S&P 500.
Traders are now turning their attention to the Federal Reserve's meeting next week and preparing for the busiest week of the second-quarter earnings season.
The rise in oil prices weighed on markets this week, stoking fears that inflation could reaccelerate and prompting investors to bet the Fed could raise interest rates as soon as next week.
"The reason the market is so chaotic this week is the escalation of hostilities in the Middle East—but that's not new," said Scott Ladner, Chief Investment Officer at Horizon Investments, in a phone interview. "What's changed is that the surge in crude prices is fueling worries about inflation and the interest rate path, driving bond yields sharply higher."
Mixed results from major technology companies have also sparked concerns about the sustainability of the artificial intelligence investment theme.
Adding to the volatility, the U.S. announced new tariffs on approximately 60 economies.
At the close, the S&P 500 Index was up 0.1% at 7,411.98 points;
The Dow Jones Industrial Average rose 0.5% to 51,947.25 points;
The Nasdaq Composite Index fell 0.6% to 24,975.82 points;
The Nasdaq 100 Index declined 1.2% to 28,128.34 points;
The Russell 2000 Index slipped 0.3% to 2,929.999 points.
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