Dow finishes higher as chip stocks lift Nasdaq; Moderna slides

U.S. stocks finished mostly higher Friday, with the Dow Jones Industrial Average closing in positive territory and the Nasdaq Composite getting a lift from renewed strength in semiconductor shares. The S&P 500 also advanced, keeping the broad market index on track for a winning week as investors balanced optimism around technology demand with caution ahead of the weekend.

Chip stocks were among the day’s most closely watched movers. SK Hynix drew attention after jumping in its U.S. trading debut, underscoring continued investor interest in companies tied to artificial intelligence infrastructure and advanced memory chips. The South Korean chipmaker has become a key supplier in high-bandwidth memory, a component widely used in AI computing systems.

The broader semiconductor group helped offset pressure in other parts of the market. Analysts and traders have continued to focus on demand from data centers and cloud computing companies, even as questions remain about valuations across the technology sector. The Nasdaq’s gain reflected that rotation back into growth and chip-related names.

Markets weigh risk before weekend

Despite the positive finish for major indexes, trading was uneven as investors trimmed some risk before the weekend. Geopolitical concerns, including tensions involving Iran, remained part of the market backdrop. Such risks can lead traders to reduce exposure late in the week, particularly when markets have already posted gains.

The S&P 500’s move higher suggested that investors remained willing to support large-cap stocks, though the session did not show broad enthusiasm across every sector. Defensive positioning and selective buying were both visible, a pattern that has become common as markets react to shifting interest rate expectations, corporate earnings prospects and global headlines.

Investors are also watching the Federal Reserve’s path for interest rates. While the latest session was driven more by individual stock moves and sector rotation, expectations for future rate cuts continue to shape sentiment. Lower rates can support equities by reducing borrowing costs and making stocks more attractive relative to bonds, but uncertainty about inflation and economic growth has kept markets sensitive to incoming data.

Moderna falls as health shares lag

Moderna was a notable decliner, weighing on parts of the health care sector. The biotechnology company’s stock tumbled as investors reassessed its outlook following a difficult period for vaccine-related demand. Moderna has been working to expand beyond its COVID-19 vaccine business, but the market has remained focused on the pace of that transition and future revenue prospects.

The split between chip strength and weakness in select health care shares highlighted the uneven tone of the day. Investors continued to reward companies viewed as beneficiaries of artificial intelligence spending, while punishing those facing slower growth or unclear near-term catalysts.

For the week, the S&P 500’s performance reflected a market still supported by large technology companies and resilient risk appetite. Even so, the mixed action beneath the surface suggested that traders remain selective. With geopolitical risks, central bank policy and upcoming economic data still in focus, investors are likely to keep watching whether gains broaden beyond the biggest technology and semiconductor names.