The S&P 500 barely advanced and its biggest weight came from the technology index, which underperformed the broader market to finish down 0.88%. (EPA Images pic)NEW YORK: The tech-heavy Nasdaq fell on Friday as investors sold chip stocks on worries about massive spending on artificial intelligence ahead of the next batch of megacap earnings reports, while falling oil prices provided Wall Street with some support even as Middle East hostilities continued.The S&P 500 barely advanced and its biggest weight came from the S&P 500 technology index, which underperformed the broader market to finish down 0.88%, as chip stocks fell.While investors looked ahead to next week's results from megacaps Microsoft, Amazon, Meta and Apple, their enthusiasm has waned since Alphabet's announcement, late on Wednesday, of a massive hike to its capital spending plans even as it burns cash.After piling into technology stocks in recent years on the promise of growth from AI, investors have become worried about the need for ever-increasing capital outlays for AI, according to Peter Andersen, CEO of Andersen Capital Management."People are thinking, how do we make sense of all this spending, and how much more patient do we have to be before we actually see it translate to actual profits?" Andersen said."The fear of missing out is becoming more like a fear of massive overbuilding."Late on Thursday, Intel forecast quarterly profit and revenue above Wall Street estimates and outlined plans to increase spending over the next two years. Still, the chipmaker's shares sank to close down 7.9% on Friday in sympathy with the Philadelphia SE Semiconductor index, which dropped 4.5%.The Dow Jones Industrial Average rose 235.60 points, or 0.46%, to 51,947.25, the S&P 500 gained 3.68 points, or 0.05%, to 7,411.98 and the Nasdaq Composite lost 161.87 points, or 0.64%, to 24,975.82.For the week, the Dow fell 0.4%, its third straight weekly loss.
The S&P 500 and the Nasdaq registered their second straight week in the red with the S&P falling 0.6% while the Nasdaq lost 2%.Among the S&P 500's 11 major industry indexes, real estate was the strongest, with a 2.4% advance. The sector's leading gainer was Digital Realty Trust, which rallied 11% after it raised its full-year forecast for funds from operations.The second-biggest sector gainer was materials which rose 1.44% as investors turned their attention t…
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