[Created using ChatGPT]
[Created using ChatGPT]

US stocks posted a mixed performance Friday as international oil prices reversed course after six consecutive sessions of gains, but persistent weakness in semiconductor shares weighed on the broader market.

The Dow Jones Industrial Average closed up 235.60 points, or 0.46 percent, at 51,947.25. The S&P 500 edged up 3.68 points, or 0.05 percent, to finish at 7,411.98, while the tech-heavy NASDAQ Composite fell 161.87 points, or 0.64 percent, to 24,975.82.

Stabilizing oil prices provided the main support for investor sentiment. Reports that Pakistan, with Chinese backing, was stepping in to mediate negotiations between the United States and Iran helped ease geopolitical tensions in the Middle East.

September Brent crude futures, which had topped $100 per barrel on Friday, settled down 3.88 percent at $89.31 per barrel. September West Texas Intermediate futures also fell 3.12 percent to close at $89.31 per barrel.

The relief proved short-lived, however. Investor caution returned after reports emerged that Donald Trump was in final deliberations over whether to launch a large-scale military strike against Iran. Adding to the unease, the Trump administration moved to impose so-called "forced labor tariffs" on roughly 60 countries under Section 301 of US trade law.

Semiconductor stocks bore the brunt of the selling. Intel tumbled 7.9 percent despite posting second-quarter earnings that beat market expectations, as concerns mounted over the company's ability to win customers for its foundry business. Broadcom fell 2.7 percent, AMD dropped 3.3 percent and Micron lost 7.0 percent.

The Philadelphia Semiconductor Index plunged 4.3 percent, and SK hynix's American depositary receipts slid 8.8 percent. Analysts attributed the broad-based weakness in chip stocks to lingering doubts about profitability, even as companies continue to expand investment in AI infrastructure.

Apple bucked the trend, rising 3.5 percent and providing the main lift to the Dow.

For the week, the NASDAQ fell 2.1 percent, extending its losing streak to two consecutive weeks. The S&P 500 and the Dow also ended the week lower, declining 0.6 percent and 0.4 percent, respectively.

Attention now turns to next week, when several major technology companies are scheduled to report earnings and the Federal Reserve holds its Federal Open Market Committee meeting. Microsoft, Meta and Apple are among those set to release results, and any signal of a shift in the Fed's monetary policy stance is seen as a key variable for markets.


arete@heraldcorp.com