The S&P 500 sank 1.3% amid a rout in chip stocks. The benchmark US stock index suffered its worst weekly loss since September, closing near the level it opened the morning after President-elect Donald Trump’s election win.
The Nasdaq 100 fared worse with a 2.4% drop, and the Russell 2000 gave back 1.4% for a 4% retreat on the week.
Utilities were the best performing S&P 500 sector ETF, gaining 1.5% on the day. Financials and real estate were the only two other sectors in the green.
Megacap tech, and in particular semiconductor stocks, fared poorly on Friday. Tesla was the only member of the Magnificent 7 to advance, posting a 3.1% gain. All others in the group finished down at least 1.4%, punctuated by Amazon’s 4.2% decline.
The VanEck Semiconductor ETF tumbled 3.3%, with an underwhelming sales forecast from Applied Materials weighing on the industry.
Palantir Technologies was a standout on the upside, gaining double digits after announcing plans to shift its listing to the Nasdaq, which could spur buying from passive funds. The company is now the year’s top performing S&P 500 stock.
