Wall Street finished mixed on Friday as investors dumped semiconductor stocks ahead of another busy week of technology earnings, with concerns mounting over the soaring cost of artificial intelligence investment despite lower oil prices offering broader market support.
The Dow Jones Industrial Average rose 235.6 points, or 0.5%, to 51,947.3, while the S&P 500 edged up 3.7 points, or 0.1%, to 7,412.0. The Nasdaq Composite underperformed, falling 161.9 points, or 0.6%, to 24,975.8.
For the week, the Dow slipped 0.4%, the S&P 500 lost 0.6%, and the Nasdaq fell 2% as investors rotated out of high-growth technology stocks.
The caution comes ahead of earnings this week from Microsoft, Amazon, Meta Platforms and Apple, with investors growing more selective after Alphabet surprised markets by sharply lifting its capital expenditure plans despite continued pressure on free cash flow.
Intel also weighed on sentiment after forecasting quarterly profit and revenue above Wall Street expectations while outlining plans to significantly increase spending over the next two years.
Despite the upbeat outlook, the chipmaker's shares tumbled 7.9% as investors focused on the higher investment costs.
Energy stocks were mixed after crude oil prices fell about 3% as traders locked in profits following a five-session rally. Oil also eased after reports China was attempting to revive stalled U.S.-Iran peace talks.
However, geopolitical tensions remained elevated after U.S. missiles struck targets across Iran following President Donald Trump's warning of "major military punishment" against Tehran and its Houthi allies in Yemen.
Meanwhile, the Trump administration introduced new tariffs of 10% and 12.5% on imports from 60 trading partners, citing inadequate enforcement of forced labour restrictions after a temporary 10% global tariff expired.
Economic data showed U.S. services sector activity accelerated in July, supported by spending linked to the FIFA World Cup and Independence Day celebrations, while manufacturing activity slowed to its weakest pace since March.
Among other movers, oilfield services company SLB climbed 11% after reporting second-quarter earnings that exceeded analysts' expectations.
On the bond markets, Treasury yields eased modestly, with the benchmark 10-year yield falling to 4.681% and the two-year yield slipping to 4.431%.
