US equity markets closed lower on Friday, dragged down by a sharp retreat in semiconductor shares and a surge in oil prices amid escalating geopolitical tensions between the United States and Iran.
The dual pressure from energy costs and tech weakness capped a difficult week for Wall Street, with investors continuing to rotate away from growth-heavy sectors.
The semiconductor sector, which had been a primary driver of market gains earlier in the year, faced renewed selling pressure.
Funds tracking chip stocks declined significantly over the week, reflecting broader concerns about valuation and demand sustainability in the artificial intelligence space.
This marks a continuation of the trend seen earlier in the week, where the technology-heavy Nasdaq Composite and the broader S&P 500 retreated as investors reduced exposure to AI-related names.
Simultaneously, crude oil prices climbed as fears of a widening conflict between the US and Iran intensified.