Wall Street’s technology-led split widened Friday as investors continued to sell some of the market’s biggest growth names, leaving the Nasdaq with a sharp weekly loss even as other parts of the U.S. equity market showed more resilience.

The move capped a week in which the artificial intelligence trade, one of the defining forces behind U.S. stock gains in recent years, came under renewed scrutiny. A CommBank and Australian Associated Press report published June 26 said U.S. stocks finished mixed in the session it tracked, with losses in major technology companies weighing on the Nasdaq while the Dow Jones Industrial Average ended higher. The report said the Dow rose 71.72 points, or 0.14%, the S&P 500 slipped 0.73 point, or 0.01%, and the Nasdaq dropped 118.03 points, or 0.46%.

By Friday’s close in New York, the pressure had broadened into a tough weekly finish for technology-heavy indexes. Reuters reported that the S&P 500 ended marginally lower Friday, down 0.05% at 7,353.95, while the Nasdaq declined 0.24% to 25,297.62 and the Dow Jones Industrial Average slipped 0.09% to 51,876.11. For the week, the S&P 500 fell 2.05% and the Nasdaq lost 4.7%, according to Reuters. The Associated Press separately reported that the S&P 500 and Nasdaq each closed out weekly losses, while the Dow managed a 0.6% weekly gain.

The divergence underscored a central tension for investors: the broader market has not collapsed, but the highest-profile technology and semiconductor trades are facing more questions about valuation, margins and the economics of AI infrastructure. The Philadelphia semiconductor index tumbled 5.3% Friday, Reuters reported, highlighting volatility in chipmakers that have been central to the AI buildout. For the week, the chip index lost 7.9%, its worst week since early April.

The concern is not simply whether AI demand exists. Companies across cloud computing, software, networking and semiconductors continue to describe strong demand for computing capacity. The market question is whether the pace of spending on data centers, memory, storage and advanced chips will generate returns fast enough to justify high valuations. That issue has grown more important as hyperscalers and enterprise technology providers commit large sums to AI infrastructure while investors watch for evidence of durable revenue and profit growth.

The CommBank/AAP report said technology shares reversed early gains as investors worried about hyperscaler spending on artificial intelligence and who ultimately pays for it. It also said those concerns outweighed upbeat signals on AI demand from Micron and Qualcomm in the session covered by that report. Apple slid 6.1% after raising prices for iPads and MacBooks to counter rising memory and storage chip costs, while Nvidia, Microsoft and Alphabet were also lower, according to the same report.

Friday’s trading showed how quickly leadership can rotate. Reuters reported that Apple rebounded 3.1% after its Thursday selloff, while Moderna surged nearly 13% following an investor event and pipeline update. That contrast left the market less uniformly weak than the headline Nasdaq move suggested. The Associated Press reported that more stocks rose than fell inside the S&P 500 on Friday, even though AI-related weakness kept the major benchmark slightly lower.

Economic data added another layer to the market’s caution. The U.S. Bureau of Economic Analysis said Thursday that the personal consumption expenditures price index rose 4.1% in May from a year earlier, up from 3.8% in April, while personal income, disposable personal income and consumer spending each increased 0.7% on a monthly basis. The PCE gauge is closely watched because it is the Federal Reserve’s preferred inflation measure.

The same week also brought an updated reading on growth. The BEA said real gross domestic product increased at a 2.1% annual rate in the first quarter of 2026, above the prior estimate of 1.6%. The combination of firmer growth, higher inflation and resilient consumer spending complicated the rate outlook for investors already reassessing high-multiple technology shares. Reuters reported that traders were pricing in one 25-basis-point rate hike and a roughly 27% chance of another by year-end, based on LSEG-compiled data.

Oil and Treasury markets also shaped the session. The Associated Press said Treasury yields eased as oil prices moved back toward levels seen before the war with Iran, helping relieve some inflation pressure. But the improvement in energy prices did not fully offset worries that technology supply costs, especially in memory and storage, could pressure consumer electronics prices and corporate margins.

Market breadth gave investors competing signals. On one hand, the S&P 500 and Nasdaq both posted losing weeks, and the Nasdaq’s decline showed how sensitive major U.S. benchmarks remain to a narrow group of technology and AI-linked companies. On the other, the Dow’s weekly gain and the Russell 2000’s weekly advance, as reported by the Associated Press, suggested buyers were still willing to own parts of the market outside the most crowded AI trades.

For Silicon Valley and the broader U.S. business landscape, the week’s action raised practical questions for corporate strategy. If investors become less willing to reward capital-intensive AI expansion, technology executives may face more pressure to explain when infrastructure spending will translate into cash flow, customer retention and operating leverage. Hardware makers and cloud providers could also face tougher scrutiny over cost pass-throughs if memory, storage and advanced chip prices continue to climb.

The immediate market takeaway was not a wholesale rejection of U.S. equities, but a more selective approach. Investors appeared to be separating companies with near-term earnings support from those whose valuations depend heavily on long-term AI assumptions. That shift left Wall Street split: the Nasdaq remained exposed to the sharpest pressure, while other corners of the market showed enough strength to keep the selloff from becoming a uniform retreat.