U.S. equity indices ended lower on Friday, with the S&P 500 and Nasdaq Composite registering losses, while semiconductor stocks posted gains driven by strong earnings and continued enthusiasm for artificial intelligence infrastructure. Nvidia and Advanced Micro Devices outperformed, defying broader market weakness.
- S&P 500 dropped 0.7% to 5,384.21; Nasdaq Composite fell 1.1% to 16,743.87
- Philadelphia Semiconductor Index rose 3.2% to 3,691.45
- Nvidia shares gained 5.3% to $1,012.45; AMD rose 4.1% to $148.70
- Micron Technology advanced 3.8% to $135.20 on AI memory demand
- 10-year Treasury yield climbed to 4.72%, affecting growth equities
- Russell 2000 declined 0.9%, signaling weakness in small-cap space
The S&P 500 closed 0.7% lower at 5,384.21, marking its third consecutive daily decline. The Nasdaq Composite fell 1.1% to end at 16,743.87, pressured by losses in mega-cap tech names beyond the chip sector. In contrast, the Philadelphia Semiconductor Index surged 3.2% to close at 3,691.45, led by gains in key semiconductor producers. Nvidia Corp. shares rose 5.3% to $1,012.45, driven by strong fourth-quarter revenue guidance and continued demand for its data center GPUs. Advanced Micro Devices Inc. advanced 4.1% to $148.70, supported by accelerating adoption of its AI accelerators in cloud and enterprise environments. Micron Technology Inc. gained 3.8% to $135.20, as investors priced in robust memory demand from AI-driven workloads. The divergence highlights a growing market bifurcation, with capital increasingly favoring high-growth technology subsectors over broader equities. Despite the broader sell-off, capital flows into semiconductor equities suggest sustained confidence in AI-related capital expenditures. The Russell 2000 index declined 0.9%, reflecting weaker sentiment in small-cap stocks. Market participants cited mixed macroeconomic signals ahead of the upcoming Federal Reserve meeting, with inflation data showing sticky core services prices and labor market resilience. These factors weighed on bond yields, pushing 10-year Treasury yields to 4.72%—a level that increased pressure on growth stocks.