U.S. stocks slipped as a sell-off in semiconductor shares and a jump in oil prices tied to renewed Middle East tension pressured major indexes, with Netflix down sharply after its results.

The S&P 500 closed around 7,533.77, down about 0.51 percent, while the Nasdaq Composite fell more steeply, weighed by semiconductor stocks. The Dow Jones Industrial Average was mildly lower, easing roughly 0.20 percent as investors rotated out of the most richly valued names.

Chip stocks, which led the market's gains through the first half of the year, have been hit hard in July, with many semiconductor names entering bear-market territory amid a rotation away from AI-exposed companies. Asian chipmakers also fell, reinforcing the weakness across the global supply chain.

Oil prices rose on escalating U.S.-Iran tensions, including strikes and renewed concern over shipping through the Strait of Hormuz. The move pushed energy back into focus and reminded fund managers how quickly a calm tape can fracture on geopolitics.

Netflix shares dropped about 10 percent after the company reported earnings, a post-results move that weighed on sentiment for other megacap growth stocks. The reaction highlighted how little room for error investors are granting even favored companies.

Broader context was mixed, with some stronger bank earnings, continued deal interest and uneven inflation data competing for attention. With no major holiday on July 19, investors heads into the week braced for a bumpier second half of the year.

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