Chip Stocks Drag Nasdaq Lower for Fifth Straight Day

U.S. stocks closed modestly lower on Friday as renewed selling in chip and AI-linked names weighed on the Nasdaq, which fell for a fifth consecutive session. The tech-heavy index declined 0.24% on the day and 4.60% for the week, putting it on track for its worst monthly performance since March 2025, while the S&P 500 slipped 0.05%. Defensive sectors outperformed as investors rotated into value and small-cap names, with the Russell 2000 gaining 0.07%. The Dow held up better despite sharp drops in Goldman Sachs and Caterpillar. All major indices remain positive year-to-date, framing the pullback as a market reset ahead of next Thursday’s June nonfarm payrolls report.