Dow Falls 207 Points as Tech and Chip Stocks Retreat

The Dow Jones Industrial Average fell 207 points on Friday as technology and semiconductor shares retreated in U.S. trading. The Nasdaq Composite dropped 0.95% and the S&P 500 declined 0.61%.

Investors reacted to reports that a major artificial intelligence company may delay its initial public offering, and to concerns about the costs of AI infrastructure. Traders at a major bank wrote in a note: ‘Sustainability of their infrastructure spending given the delay in funding from the capital markets.’

Semiconductor stocks led declines. Micron Technology fell more than 5.8% after soaring over 15% in the prior session following stronger-than-expected quarterly results and an upgraded outlook. Advanced Micro Devices and Intel each dropped more than 3.5%, while Nvidia lost about 1.7%. Oracle slipped around 0.4%.

Hardware and consumer tech price changes added to selling pressure. Apple fell roughly 6% on Thursday after announcing price increases for iPads and MacBooks tied to higher memory and storage costs; the stock recovered about 0.7% on Friday. Microsoft also eased after announcing higher prices for its Xbox gaming consoles.

Economic data influenced market expectations. U.S. consumer prices rose above 4% in May for the first time in three years, driven largely by higher energy costs linked to tensions in the Middle East. Traders adjusted Federal Reserve rate expectations, pricing in a 25-basis-point hike this year and roughly a 27% chance of a second increase before year-end, according to LSEG data.

The weakness in technology extended overseas. SoftBank Group fell more than 12% in Asia. South Korea’s Kospi dropped 5.81% and Japan’s Nikkei 225 lost 4.15%. Hong Kong’s Hang Seng Index and China’s CSI 300 also posted losses, and the pan‑European Stoxx 600 declined about 1%.

Deal activity and index reclassification influenced individual stocks. Synaptics slipped about 1% after ON Semiconductor agreed to acquire the company in an all‑stock transaction valued at roughly $7 billion; ON Semiconductor shares fell about 19.4%. Market participants also expected heavy trading around upcoming Russell index changes, including the fast-track addition of SpaceX to the Russell 1000.

Analysts and traders pointed to company-specific headlines, earnings results, inflation data and shifting rate expectations as factors affecting trading in technology and chip stocks on Friday.