Stocks fall led by semiconductors, oil rises on Iran tensions
U.S. stocks ended the final trading day of the week modestly lower as traders weighed rising tensions with Iran and the ongoing trade battle with China.
|I:COMP||NASDAQ COMPOSITE INDEX||11823.960139||+36.56||+0.31%|
The Nasdaq Composite paced the declines, led by semiconductors, after Broadcom lowered its full-year revenue guidance. It now expects yearly sales to fall by $2 billion as uncertainty hangs over the chip industry after the Trump administration announced a ban on exports to Chinese telecom behemoth Huawei Tech.
The S&P 500 and Dow Jones Industrial Average ended the session modestly lower.
For the week, investors got a more positive picture. All three of the major U.S. market averages clocked the second straight week of small gains.
|I:DJI||DOW JONES AVERAGES||32237.53||+132.28||+0.41%|
In global relations, President Trump blasted Iran during an interview with Fox & Friends, blaming the country for attacks on two oil tankers in the Gulf of Oman on Thursday. Speaking by phone to Fox & Friends, Trump said that his stance is based on intelligence from a video of the incident. WTI and Brent crude prices rose on the developments.
While trade remained a cloud as President Donald Trump, earlier in the week, said he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees again to four or five "major points" that Trump did not specify.
Despite geopolitical uncrtainty, the IPO remains hot. PetSmart's online retailer Chewy's shares gained over 50 percent in its public debut after the company priced its initial public offering (IPO) at $22 a share.
In economic news, U.S. retail sales increased in May and sales for the prior month were revised higher. The Commerce Department said on Friday retail sales rose 0.5 percent last month as households bought more motor vehicles and a variety of other goods.
Data for April was revised up to show retail sales gaining 0.3 percent, instead of dropping 0.2 percent as previously reported.
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FOX Business' Ken Martin contributed to this report.