Major U.S. stock indexes closed lower on Friday, capping a losing week as a sell-off in semiconductor shares and renewed U.S.-Iran friction sent investors toward the exits and pushed oil higher.

The S&P 500 fell about 1.01 percent to 7,457.69, while the Nasdaq Composite dropped roughly 1.4 percent to 25,520.24 as technology and chip names led the decline. The Dow Jones Industrial Average slipped about 0.77 percent, or roughly 406 points, to 52,146.42.

Semiconductor stocks were the epicenter of the weakness, with investors questioning the sustainability of this year's powerful rally in AI-exposed names and rotating into less crowded parts of the market.

Geopolitical tension compounded the pressure. Escalating friction between the United States and Iran lifted crude, with Brent crossing $90 a barrel and West Texas Intermediate spiking toward $80 as markets monitored the Strait of Hormuz.

Stock futures were little changed heading into the new week, suggesting investors were inclined to wait for fresh catalysts. Attention now turns to a heavy earnings calendar featuring Alphabet and Tesla.

Wall Street is watching whether corporate results can rekindle confidence in the AI trade or confirm fears that the market has grown too narrowly dependent on a handful of megacap technology names.

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