S&P 500 slips from record

The US benchmark S&P 500 ended Friday in negative territory, backing away from a record high, according to The Express Tribune. Chip equipment maker Applied Materials weighed most heavily on the index, while traders also reacted to retail sales figures that came in below expectations.

Applied Materials shares dropped 5.1% despite a positive quarterly outlook, which did not win over investors. The company's stock has doubled in 2026 on robust demand linked to the expansion of AI data centres. Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, said the drop reflected lofty expectations even though the company had beaten forecasts and raised its outlook.

Chipmakers also declined as nervousness over lofty valuations of AI-linked stocks grew, with Broadcom down 5.9% and Intel losing 2%. Shipping across the Strait of Hormuz was nearly halted after two more vessels came under attack, and Washington indicated its naval blockade of Iran could continue indefinitely. The setbacks deepened investor gloom, coming after a senior Iranian source reported no progress on talks to build on a June accord meant to end the conflict. Meanwhile the S&P 500 energy index rose 1.4% on higher oil prices, and Reddit jumped almost 13% after being chosen for inclusion in the index from August 18.