Semiconductor sector pressure and AI spending concerns drove Nasdaq losses, while the Dow limited declines due to strong insurance earnings.
The Nasdaq Composite fell 1.1% at midday Friday, extending its weekly decline to 2.5%, as chip stocks faced selling pressure. The S&P 500 dropped 0.7%, while the Dow Jones Industrial Average held losses to 0.3%, supported by a standout insurance sector quarter.
For the week, the Dow is down 0.4%, the S&P 500 1.1%, and the Nasdaq 2.5%. Mega-cap tech stocks underperformed, while equal-weighted indices showed minimal movement. Taiwan Semiconductor Manufacturing’s $64 billion capital expenditure forecast fueled concerns over unsustainable AI infrastructure spending.
Earlier in the week, South Korea’s market crash and IBM’s sharp decline added to volatility. Alphabet shares fell 2.2% Friday, contributing to the tech sector’s weakness.