The S&P 500 dipped from record highs on Friday as geopolitical tensions and disappointing retail sales data weighed on the index. Applied Materials led the decline, dropping 5.5% after its quarterly forecast failed to impress investors.
Concerns over AI stock valuations persisted, with Broadcom falling 6.8% and the Philadelphia SE Semiconductor index dipping 1.2%. The energy index, however, rose 1.4% as oil prices increased amidst tensions in the Strait of Hormuz, adding to market pessimism.
Despite the downturn, the S&P 500 and Nasdaq remained on track for their third consecutive weekly gains. Investors reevaluated interest rate expectations, with data suggesting the Federal Reserve might hold rates steady in September.
(With inputs from agencies.)