US stocks opened mixed on Friday, recovering modestly after Wall Street’s sharp selloff in the previous session, as investors assessed fresh corporate earnings, easing oil prices, escalating geopolitical tensions in the Middle East, and new tariffs announced by the Trump administration.
The Dow Jones Industrial Average rose about 40 points, while the S&P 500 gained around 0.13%.
The Nasdaq Composite fell 0.13%, continuing from Thursday’s losses.
The rebound came after the Dow fell more than 500 points, or around 1%, on Thursday, while the S&P 500 and Nasdaq Composite posted their steepest one-day declines in a month.
The selloff was driven by concerns over rising artificial intelligence spending following earnings from Alphabet and Tesla, alongside a surge in oil prices amid escalating Middle East tensions.
Intel shares fall despite good earnings
Intel reported second-quarter results that exceeded Wall Street expectations.
The chipmaker forecast quarterly revenue and profit above analyst estimates and outlined plans to increase spending over the next two years.
The company also reported revenue growth of 25%, marking its strongest quarterly revenue increase since the third quarter of 2011.
However, shares of Intel fell about 1.14% in trading.
The broader semiconductor sector remained subdued as investors continued to scrutinize AI-related spending across the technology industry.
Alphabet and Tesla’s latest quarterly results have heightened concerns over increasing capital expenditures and cash burn among major technology companies.
The cautious mood comes ahead of earnings reports next week from Microsoft, Amazon and Meta Platforms, which are expected to provide further insight into AI infrastructure spending.
Investors have become increasingly selective toward AI-related companies, rewarding operational execution while paying closer attention to profitability and returns on investment.
Oracle traded higher by 0.7% after the Pentagon announced a contract worth nearly $7 billion over as long as 10 years to consolidate the Defense Department’s on-premises software licenses under a single cloud agreement.
Middle East tensions and tariffs remain key market drivers
Markets continued to monitor geopolitical developments after President Donald Trump signaled that he is considering further military action against Iran following attacks by Yemen’s Houthi forces on two Saudi oil tankers in the Red Sea.
Oil prices, which climbed above $100 a barrel on Thursday for the first time since late May, eased on Friday. Brent crude traded near $97 per barrel, down roughly 3%, while US West Texas Intermediate crude slipped more than 2% to trade above $89 per barrel.
Although prices retreated, investors remain concerned that prolonged disruptions to global energy supplies could revive inflation pressures and complicate central bank policy decisions.
Separately, the Trump administration announced new tariffs ranging from 10% to 12.5% on goods from 60 trading partners, citing concerns over enforcement of forced-labor bans.
The measures took effect after a temporary 10% global tariff expired.
Investors turn attention to Fed meeting and economic data
Attention is now shifting toward next week’s Federal Reserve policy meeting and the release of the Personal Consumption Expenditures (PCE) price index, the central bank’s preferred inflation measure.
According to CME FedWatch data, markets are pricing in roughly a one-in-three probability of a Fed rate hike next week, compared with about a 12% chance a week earlier.
Despite Friday’s rebound in futures, the major US indexes remain on track for weekly losses, with the Dow heading toward a third consecutive weekly decline and both the S&P 500 and Nasdaq poised for a second straight week in the red.
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