U.S. stocks ended Friday with a mixed finish as the Nasdaq trailed the other major indexes. The technology-heavy benchmark came under pressure as investors pulled back from chip shares, reflecting unease about how much major companies are spending on artificial intelligence ahead of another round of closely watched earnings reports.
The Dow managed to post gains, while the S&P 500 was nearly unchanged. That split performance highlighted how market sentiment is being shaped by two competing forces: optimism around corporate results and caution over whether large AI investments will deliver enough near-term returns.
A drop in oil prices helped support the broader market and eased some pressure on stocks outside the technology sector. Lower energy costs can be a positive signal for inflation expectations and corporate expenses, which likely helped offset some of the weakness tied to semiconductors and other AI-linked names.
At the same time, investors continued to monitor geopolitical tensions and tariff-related developments, both of which added another layer of uncertainty. With megacap earnings still ahead, trading reflected a market that is not fully stepping away from risk, but is becoming more selective about where it wants exposure.
