US Stocks End Week Lower on Chip Sell-Off Led by Nvidia, AMD

US stocks closed lower Friday, capping a week of losses. The S&P 500 fell 0.6%. The Nasdaq Composite dropped 1.2%, its fourth consecutive down day. The Dow Jones Industrial Average slipped 0.3%.

The Philadelphia Semiconductor Index lost 2.8% for the week, its worst weekly performance in three months. Nvidia fell 4.1% on Friday, bringing its weekly decline to 9%. Advanced Micro Devices dropped 3.2%. Intel slid 2.5%.

The sell-off accelerated after a report suggested the pace of artificial intelligence spending may slow. The report said companies are reassessing returns on large-scale investments. The concern hit chipmakers hardest, given their direct exposure to AI infrastructure demand.

Treasury yields edged lower. The 10-year note settled at 4.18%. Defensive sectors attracted buyers. Utilities and consumer staples posted modest gains.

All three major indexes finished the week in the red. The S&P 500 fell 1.4% for the week. The Nasdaq lost 2.3%, and the Dow shed 0.7%.