Semiconductor selloff drags Nasdaq, S&P 500 to weekly losses
SMH•Wall Street ended lower Friday, with the Nasdaq down 2.2% and the S&P 500 off 1.1%; both posted weekly losses. The semiconductor index fell 11.4% for the week, its longest losing streak since the financial crisis.
1. Chip stocks slide
All three major U.S. stock indexes closed lower Friday, with the Nasdaq posting the steepest percentage decline. The Philadelphia Semiconductor Index fell 11.4% for the week and closed 23.9% below its June 22 record high, extending its losing streak to eight sessions, its longest since the financial crisis. It remains up 57.2% this year, compared with an 11.9% gain for the S&P 500.
2. Oil and economic data
Front-month U.S. crude and Brent settled up 3.5% and 3.7%, respectively, as supply uncertainty continued amid Middle East turmoil. Import prices recorded their largest annual increase in more than four years, while industrial output exceeded analyst estimates. The 10-year Treasury yield was flat at about 5.09%.
3. Earnings ahead
Third-quarter reporting season is underway, with 45 S&P 500 companies having reported; 84% exceeded earnings expectations, LSEG data showed. Tesla, Meta Platforms, IBM and Netflix are among companies expected to report next week.
