The Nasdaq Composite dropped 0.5% on Friday, according to market data, as chip stocks dragged the tech-heavy index toward a weekly loss of 2%. At the same time, according to market reports, the S&P 500 traded near the flatline while the Dow Jones Industrial Average climbed 134 points, or about 0.3%, as investors weighed sliding semiconductor valuations against shifting geopolitical risks in the Middle East.
Semiconductor Stocks Lead Market Decline
Chipmakers faced sharp losses to close the week, led by Micron Technology, which declined 6%, according to trading reports. Intel shares fell 4%, reversing earlier gains that followed second-quarter results that exceeded Wall Street expectations. Broadcom and Advanced Micro Devices each fell 2%, while the VanEck Semiconductor ETF pulled back 2%.
The broader equity markets felt the weight of Thursday’s sell-off, when the Dow dropped more than 500 points, or around 1%, marking its fifth negative session in six days. According to market trackers, the S&P 500 and Nasdaq both suffered their worst single-day performances since June 23, driven by steep declines in Tesla and Alphabet shares.
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Geopolitical Tensions Drive Crude Oil Fluctuations
Outside of equities, energy markets reacted to escalating conflict in the Middle East. According to Axios, U.S. President Donald Trump stated in an interview that he will soon make a decision on whether to launch a massive attack on Iran after the conflict extended to the Red Sea. “I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it,” President Trump said, adding that Iran has not received enough pain yet.
U.S. forces have targeted Iranian positions over a two-week period, completing a 13th consecutive night of strikes overnight, according to military reports. Despite the ongoing escalation, Brent crude futures eased from recent highs above $100 per barrel—levels not seen since late May—to trade at roughly $97, down 3%. U.S. West Texas Intermediate futures fell 2% to trade above $89 a barrel.
“While current positioning does not guarantee that oil will continue rising, it does mean that the market entered the latest escalation poorly positioned for an upside surprise,” said Adam Turnquist, chief technical strategist at LPL Financial. “And when sentiment and positioning are extremely bearish, even a modest deterioration in supply expectations can produce an outsized price response.”
Frequently Asked Questions
Why did the Nasdaq fall while the Dow rose?
The Nasdaq declined due to heavy selling across major semiconductor stocks like Micron and Intel.
How have recent Middle East conflicts impacted oil prices?
Brent crude futures topped $100 per barrel for the first time since late May before easing back to roughly $97 per barrel following recent U.S. military strikes in the region.
What did President Trump say regarding potential military action?
According to Axios, President Trump stated he is close to deciding on a massive attack against Iranian targets that would be larger than previous operations in the conflict.
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