Stocks Waver as Chip Rout Offsets Oil Drop – US Market Wrap

Wall Street traders sent stocks wavering at the end of a volatile week, with a decline in oil prices and signs of strength in Corporate America’s earnings engine offsetting a selloff in chipmakers. While most shares in the S&P 500 advanced, the benchmark was little changed. A semiconductor gauge dropped 4.3%, while the Nasdaq 100 fell 1.1%. Brent crude slipped from $100 as oil continued to move through Middle East trade routes despite ongoing hostilities. The pullback in energy prices eased inflation concerns, helping push Treasury yields lower just days ahead of the Federal Reserve decision.

Geopolitical tensions remained elevated, though hopes for mediated talks between the US and Iran provided some relief. Pakistan is exploring a route to revive negotiations following a push led by China, according to reports. Meanwhile, Trump met with senior advisers to consider whether to escalate attacks, the New York Times reported.

Traders are preparing for next week’s earnings from megacaps including Microsoft, Meta and Apple. Investors have been seeking clearer evidence that heavy AI spending is translating into growth rather than weighing on profits. On the economic front, US business activity expanded at the fastest pace in eight months, as strong services demand offset softer factory output, rising supply chain delays and higher costs. New-home sales also increased in June.