Wall Street faced another shaky day as the Nasdaq slipped 0.6%, marking its second consecutive decline amid widespread unease about AI-related spending and fresh US tariffs. Despite the Dow Jones Industrial Average gaining 235 points, or roughly 0.5%, and the S&P 500 barely moving, the broader market mood stayed cautious heading into the weekend.

All three major indexes ended the week lower, with the Nasdaq leading losses, down 2% over five days. The sour sentiment traces back to Thursday’s sell-off, where the "Magnificent Seven" mega-cap tech stocks collectively shed close to $800 billion in value over fears they might overspend on AI initiatives without immediate returns. Alphabet’s recent earnings report was a key catalyst, leaving investors uneasy about the hefty investments in artificial intelligence.

Intel’s shares also tumbled nearly 8%, even though its second-quarter profits surpassed Wall Street forecasts. This reaction highlights the market’s growing wariness, especially in the chip sector. Investors are now bracing for a busy week ahead as Apple, Amazon, Meta, and Microsoft prepare to announce their earnings, which could further shake the tech landscape.

Adding to the pressure, new US tariffs ranging from 10% to 12.5% were implemented overnight on most imports, targeting major trading partners. Energy products were exempted, reflecting concerns about rising oil prices and inflation. Brent crude futures fell around 4% on Friday, dipping below $96 per barrel after briefly hitting the $100 mark, though oil still posted a weekly gain.

Bond markets showed some signs of easing. The two-year Treasury yield retreated slightly to 4.33% after six days of gains. Meanwhile, traders currently assign a 62.1% chance that the Federal Reserve will hold interest rates steady at next week’s meeting, while the odds of another hike rose to nearly 38%, up from under 13% the week before.

On the earnings front beyond tech, companies like Verizon, American Express, and NextEra Energy beat profit estimates but missed on revenue. American Express and Alphabet’s stock declines significantly weighed on the Dow’s weekly performance. Meanwhile, US business activity expanded at its fastest pace in eight months in July, partially boosted by World Cup-related demand, according to S&P Global’s flash PMI.