Wall Street closed a mixed week on Friday, with the Nasdaq posting five consecutive days of losses, its longest losing streak since January, while the Dow Jones Industrial Average eked out a modest weekly gain, signaling continued investor appetite for sectors less exposed to stretched AI valuations.

The Nasdaq Composite tumbled 5% for the week, and the S&P 500 lost approximately 2%. Friday's session saw only marginal changes: the S&P 500 slipped 0.05% to 7,354.02, the Nasdaq fell 0.24% to 25,297.62, and the Dow edged down 0.09% to 51,876.11. European markets were trading mixed this morning as investors await the opening of the new week.

Semiconductors Under Pressure

The chip sector was the focal point of Friday's session. Micron Technology (MU) dropped roughly 7%, profit-taking following the blowout earnings report the company delivered earlier in the week. Micron reported Q3 fiscal 2026 revenue of $41.46 billion, a 74% sequential surge and 346% year-over-year jump, with non-GAAP EPS of $25.11, well above consensus estimates of roughly $20.80. The Friday sell-off suggests those strong results were already priced in.

Sandisk plunged over 10%, while Broadcom (AVGO) fell 3.7% and Seagate Technology also declined, all on investor concerns about stretched valuations following a prolonged rally in semiconductor stocks. Nvidia (NVDA) dropped 1.6% to close at $192.53.

The Outliers: Apple and Microsoft Buck the Trend

Two mega-cap names moved in the opposite direction on Friday. Apple (AAPL) rose 3.14% and Microsoft (MSFT) gained 5.7%, a move that market commentators interpret as selective rotation within tech rather than a wholesale exit. Investors appear to be seeking stocks with strong balance sheets and consistent profitability amid the volatility.

The Bottom Line

The past week encapsulates the current Wall Street climate: relentless AI enthusiasm on one hand, and persistent valuation anxiety on the other. Micron delivered stellar results, and the market took profits. Billionaire investor Jeremy Grantham, co-founder of GMO, warned this week that US equities are the most expensive in history. The rotation out of tech into value, small-caps, and defensive sectors continues, but it is far from uniform. The coming week may offer more clarity as investors await fresh economic data and additional earnings reports.