A turbulent week on Wall Street ended on a mixed note Friday, with stocks struggling to recover from a sharp sell-off the day before.
The Dow Jones Industrial Average closed up 235 points, or about 0.5%. The S&P 500 edged just above flat. The Nasdaq Composite dropped 0.6%, weighed down by continued pressure on tech stocks.
Despite the Friday gains in the Dow, all three major indexes finished the week in the red. The Nasdaq led declines with a 2% weekly drop.
Thursday’s sell-off was driven by concerns over artificial intelligence spending. The “Magnificent Seven” group of mega-cap tech stocks lost nearly $800 billion in combined market value in a single session.
Alphabet’s earnings, reported Wednesday evening, were the trigger. Investors grew uneasy about the pace of AI investment without clear signs of returns.
Intel shares fell nearly 8% on Friday, even though the company reported second-quarter results that beat Wall Street expectations. That reaction showed how cautious the market had become around the chip sector.
Apple, Amazon, Meta, and Microsoft are all set to report earnings in the coming week. After the reaction to Alphabet, markets could be in for more swings.
Overnight, new US tariffs under Section 301 went into effect on almost all American imports. The rates range from 10% to 12.5% and target the country’s top trading partners.
The White House carved out some energy products from the tariff list, a nod to rising oil prices that have been adding inflation concerns.
Oil did pull back on Friday. Brent crude futures dropped about 4%, falling below $96 per barrel. Even so, oil was on track for a weekly gain after briefly touching $100 per barrel.
The 2-year Treasury yield ended the week at 4.33%, though it dipped on Friday to break a six-day rising streak.
Markets are now pricing in a 62.1% chance the Federal Reserve holds rates steady at its meeting next Wednesday. Odds of a rate hike climbed to 37.9%, up from just 12.8% a week ago.
On the earnings front, Verizon, American Express, and NextEra Energy all beat profit forecasts but missed revenue targets. American Express and Alphabet together dragged the Dow into negative territory for the week.
US business activity did expand at its fastest pace in eight months in July, according to S&P Global’s flash PMI, partly boosted by World Cup activity.
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