Stocks finished lower Friday as tech shares extended their recent slump and chip makers broadly declined. Investors continued to rotate out of AI momentum names and into lagging sectors.
Separately, President Donald Trump threatened 100% tariffs on all goods from any country that follows through on digital services taxes on U.S. firms.
Micron Technology stock slid 6.7%, following South Korean peers SK Hynix and Samsung Electronics lower. Shares of the memory-chip maker spiked 16% on Thursday following stellar third-quarter earnings.
Flash memory product supplier Sandisk sank 11% to close lower on the week after surging 22% on Thursday. Hard disk-drive makers Seagate Technology and Western Digital declined 12% and 13%, respectively.
Nvidia closed 1.6% lower at $192.53. The widespread tech-sector selloff has made it difficult for shares of the chip maker to establish a new trading floor.
Optical networking stocks Coherent and Lumentum fell 6.6% and 5.2%, respectively. Semiconductor company Marvell Technology tumbled 5.2% and chip manufacturer Intel fell 3.4% as investors ditched AI winners.
Apple fared better, finishing the session up 3.1%. The gains followed Apple's worst session in more than a year, as shares fell 6% on Thursday after the iPhone maker said it would jack up the price of MacBooks and iPads. The move signaled that rising memory prices have been making their way to consumers.
Moderna rose nearly 13% and was the S&P 500's best performer. While the move could be read as an investor rotation away from tech and into defensive biopharma, Moderna also announced its first in vivo CAR-T program. Its initial focus will be on B-cell-mediated autoimmune diseases like systemic lupus erythematosus -- a chronic condition in which the immune system attacks healthy tissues and organs.
ON Semiconductor cratered 24% to become the benchmark index's biggest laggard. The chip maker said late Thursday that it had agreed to buy internet-of-things company Synaptics in an all-stock transaction with an enterprise value of about $7 billion.
While chip stocks suffered losses, several software companies revved higher. ServiceNow gained 9.9%, Workday advanced 9.2%, and AppLovin rose 7%.
Palantir Technologies added 5.3% to snap a seven-day losing streak. Shares on Thursday fell 5.5% to $107.27, marking a fresh 52-week low. Cathie Wood's ARK Invest bought the dip on Thursday, adding more than 30,000 shares across three of its largest funds.
SpaceX ticked up 0.2% to $152.78. Shares of Elon Musk's rocket and AI company have wiped out much of their gains since their record-breaking IPO, and the slump only intensified following the company's inaugural bons sale earlier this week. SpaceX joined the Russell 1000 index after Friday's closing bell.
Fellow space-linked stocks Rocket Lab and Firefly Aerospace fared better, gaining close to 4% each.
FedEx Freight closed down 3% after the freight trucking company's fourth-quarter revenue came in just above analysts' expectations.
Write to George Glover at george.glover@dowjones.com and Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
June 26, 2026 16:27 ET (20:27 GMT)
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