A fresh burst of selling in chipmakers and artificial-intelligence names dragged U.S. equities into mixed territory Friday, sending the tech-heavy Nasdaq 100 lower while a value-oriented Dow Jones clung to gains near record highs. Investors continued to question whether the industry's massive AI spending can justify its lofty valuations.
West Texas Intermediate crude tumbled 4.7% to around $68.55 a barrel, leaving the U.S. benchmark down nearly 23% for the month. This marks the worst monthly performance since March 2020 as traders look past the Hormuz headlines toward signs OPEC is restoring Iraq's pre-war production allocations.
The S&P 500 was roughly flat at 7,363, up about 0.1%, while the Dow Jones Industrial Average added around 61 points, also up 0.1% to near 51,982, supported by strength in software and other non-AI names. The Nasdaq 100 underperformed, falling 0.6% to about 29,253 as the AI trade wobbled. Gold added 1.3% to around $4,081 an ounce, clawing back some ground despite remaining down roughly 8% for the month.
Friday's Performance In Major US Indices
Updated by 12:25 PM ET
According to market data:
Semiconductors Crater As Money Rotates Into Defensives
Technology was the clear laggard, with the chip rout deepening across the complex. The VanEck Semiconductor ETF (SMH) sank 3.4%, the worst-performing industry fund on the screen.
By contrast, money rotated into software and defensives: the iShares Expanded Tech-Software Sector ETF (IGV) jumped 3.2%, the VanEck Gold Miners ETF (GDX) climbed 3.1% alongside firmer bullion, and the iShares Biotechnology ETF (IBB) gained 2.6%.
The epicenter of the selling was ON Semiconductor Corp. (ON), which cratered 21% after agreeing to acquire Synaptics Inc. (SYNA) in an all-stock deal valued at roughly $7 billion. The damage spread across chip and AI-hardware names, extending pressure that has built since Broadcom's recent AI-revenue guidance disappointed.
Optical and AI-networking suppliers Lumentum Holdings Inc. (LITE) and Corning Inc. (GLW) slid 8.4% and 7.8%, respectively, dragged lower in sympathy with the AI-infrastructure unwind.
Memory names also stayed under pressure, with Micron Technology Inc. (MU) reversing part of Thursday's earnings-driven surge as worries built that AI infrastructure spending could slow. Western Digital Corp. (WDC) fell 10.3%.
Health care led the rebound, powered by Moderna Inc. (MRNA), which surged 13.8% – the day's biggest gainer – after its annual Science Day presentation detailed a broadening pipeline of mRNA therapies extending well beyond vaccines into oncology and rare diseases.
AST SpaceMobile Inc. (ASTS) climbed 9.7% amid continued optimism around its Japan regulatory clearance and an upcoming satellite launch, with no single new headline confirmed for the session.
