Shares in New York dropped sharply on Friday, erasing gains from the previous day, as chip stocks fell while oil prices surged.
Oil prices climbed by up to 4.5 % after US President Donald Trump said he had “little patience” left regarding Iran in negotiating a peace deal.
Additionally, a summit between Trump and Chinese President Xi Jinping in Beijing yielded no tangible progress toward reopening the Strait of Hormuz for oil tankers.
Oil companies such as ExxonMobil, Chevron, and ConocoPhillips saw gains of up to 3.4 %.
The Dow Jones Industrial Average closed 1.1% lower at 49,526.17 points.
The broader S&P 500 fell by 1.2 % to 7,408.50 points, while the Nasdaq, focused on technology stocks, dropped 1.5% to 26,225.14 points.
Chipmakers like Nvidia, Advanced Micro Devices (AMD), Micron Technology, and Intel declined by up to 6.6 %.
Cerebras Systems, a producer of AI chips, which had soared nearly 70% during its debut on Thursday, retreated by 11%.
The company’s IPO raised over $5.5 billion, marking the largest public offering in New York so far this year.
