U.S. stocks ended mixed on Friday, with the Nasdaq ending in the red, triggered by a tech selloff on growing concerns over the massive spending on AI, as investors awaited quarterly results from the next batch of megacap tech companies. The S&P 500 ended nearly flat, while the Dow ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.5%, or 235,60 points, to close at 51,947.25 points. The blue-chip index got a boost from Apple, Inc. ((AAPL – Free Report) ) after the iPhone maker’s shares jumped 3.5%.
The S&P 500 gained less than 0.1%, or 3.68 points, to finish at 7,411.98 points. Real estate and materials stocks were the biggest gainers, while tech stocks were the worst performers.
The Information Technology Select Sector SPDR (XLK) declined 1.4%. The Real Estate Select Sector SPDR (XLRE) gained 2.2%. The Materials Select Sector SPDR (XLF) added 1.9%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq slid 0.6%, or 161.87 points, to end at 24,975.82 points.
The fear gauge, the CBOE Volatility Index (VIX), was up 0.64% to 18.58. Advancers outnumbered decliners on the NYSE by a 1.32-to-1 ratio. On the Nasdaq, a 1.25-to-1 ratio favored declining issues. A total of 15.03 billion shares were traded on Friday, lower than the last 20-session average of 18.22 billion.
On the NYSE, there were 161 new highs and 198 new lows. On the Nasdaq, there were 78 new highs and 205 new lows. On the S&P 500, there were no new 18-week highs and six new lows.
Stocks Pull Back After Initial Jump
Wall Street opened on a positive note on Friday, with stocks moving higher after oil prices dropped following a Reuters report, citing three sources that Pakistan was planning to initiate fresh peace negotiations between the United States and Iran. The report also said that China is trying to resume the stalled negotiations.
This came after President Donald Trump earlier in the week said that he will soon decide whether to launch a massive attack on Iran after tensions resumed between the two nations earlier this month.
Oil prices dropped following this. Brent crude futures, which surpassed $100 per barrel for the first time in nearly two months, fell nearly 4% to settle at $96,78 per barrel. West Texas Intermediate futures settled at $89.31 per barrel, declining 3%.
Meanwhile, the tech stocks continued to suffer as investors once again rotated out of AI-related stocks on concerns over the massive investments being made into the space.
Earnings Season Gathering Pace
Investors are also closely watching the second-quarter earnings season, with several big companies already having reported their quarterly results. Intel Corporation ((INTC – Free Report) ) ended 7.9% lower despite the company beating on earnings and raising its quarterly profit forecast.
Intel reported second-quarter 2026 earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.21 per share. The company posted revenues of $16.13 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.89%. Intel carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A batch of big tech companies like Microsoft Corporation ((MSFT – Free Report) ), Amazon.com, Inc. ((AMZN – Free Report) ) and Meta Platforms Inc. ((META – Free Report) ) are scheduled to report quarterly results next week.
Economic Data
In economic data released on Friday, the Commerce Department’s Census Bureau reported that new home sales grew 1.6% to a seasonally adjusted annualized rate of 628,000 units in June from May’s upwardly revised pace.
Weekly Roundup
For the week, the Dow ended 0.4% lower. The S&P 500 and Nasdaq recorded their second consecutive week of losses, declining 0.6% and 2%, respectively.
