Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 23, 2026.

Brendan Mcdermid | Reuters

The Nasdaq Composite fell on Friday, bogged down by chip stocks, as the index headed for a losing week.

The tech-heavy Nasdaq dropped 0.5%, while the S&P 500 traded around the flatline. The Dow Jones Industrial Average climbed 134 points, or about 0.3%.

Intel shares fell 4%, reversing course from earlier gains after the chipmaker's second-quarter results exceeded Wall Street's expectations. Other chipmakers slid alongside it, with Broadcom and Advanced Micro Devices each down 2%. Micron Technology declined 6%, and the VanEck Semiconductor ETF (SMH) pulled back 2%.

The Nasdaq is now on pace for a weekly loss, declining 2% in the period. The Dow and S&P 500 are also tracking for a losing week, as both have each shed less than 1% week to date.

The moves come after the Dow dropped more than 500 points, or around 1%, on Thursday for its fifth negative day in six. The S&P 500 and Nasdaq had their worst one-day performances since June 23 as Tesla and Alphabet suffered their worst days in more than a year following their quarterly results.

U.S. President Donald Trump said he will soon make a decision on whether to launch a "massive attack" on Iran after the conflict in the Middle East extended to a new battleground in the Red Sea. Speaking to Axios on Thursday, the president said the proposed strikes would be bigger than anything seen in the war so far, and that Iran has not "received enough pain yet."

"I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it," Trump said in the interview.

U.S. forces have pummeled Iranian targets over the past two weeks, with Central Command completing a 13th consecutive night of strikes overnight.

However, Brent crude futures — which topped $100 per barrel for the first time since late May this week — eased from those levels to currently trade at roughly $97, dropping 3%. U.S. West Texas Intermediate futures fell 2% to trade above $89 a barrel.

"While current positioning does not guarantee that oil will continue rising, it does mean that the market entered the latest escalation poorly positioned for an upside surprise," Adam Turnquist, chief technical strategist at LPL Financial. "And when sentiment and positioning are extremely bearish, even a modest deterioration in supply expectations can produce an outsized price response."