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U.S. stocks ended the week on a mixed note Friday, with the Dow Jones Industrial Average managing modest gains while the Nasdaq Composite fell sharply, weighed down by persistent worries over the global semiconductor supply chain. The S&P 500 also edged lower, reflecting broad investor uncertainty amid geopolitical tensions and looming regulatory risks in the tech sector.

The Dow climbed 35.16 points, or 0.08%, to close at 42,206.8, supported by gains in industrials and energy. Meanwhile, the Nasdaq Composite fell 98.86 points, or 0.51%, to 19,447.4, dragged down by weakness in major tech names. The S&P 500 declined 13.04 points, or 0.22%, to end the session at 5,967.83. The Russell 2000, which tracks smaller companies, also lost ground, slipping 0.21% to 209.20.

Friday’s trading session was marked by investor concerns over new U.S. measures aimed at semiconductor production. According to The Wall Street Journal, the U.S. government is preparing actions targeting chip plants in China owned by allied nations, potentially including tariffs or trade restrictions. The move is intended to reduce national security risks stemming from reliance on foreign chip manufacturing and follows a broader push under the CHIPS Act to reshore semiconductor production.

That shift is already influencing corporate strategies. Texas Instruments recently announced plans to invest over $60 billion to expand its U.S. chipmaking operations, signaling growing industry alignment with Washington’s goals. But the near-term impact on supply chains and technology firms with exposure to Chinese manufacturing weighed heavily on sentiment, particularly in the Nasdaq, which houses many of the world’s leading chip and AI companies.

Semiconductor stocks were among the hardest hit. Analysts say the potential for disrupted supply chains and higher production costs in the short term has added to broader concerns about valuations in the tech sector, especially as regulatory scrutiny intensifies.

Tesla shares were also in focus ahead of its planned Robotaxi launch in Austin on June 22. The company is facing mounting pressure from regulators, including calls from Texas lawmakers to delay the rollout due to unresolved safety concerns and compliance with new autonomous vehicle standards. The National Highway Traffic Safety Administration (NHTSA) has yet to receive Tesla’s safety data following a June 19 deadline, further fueling apprehension over the readiness of the Full Self-Driving system.

“The Robotaxi launch is less a triumph of innovation than a high-stakes bid to salvage Tesla’s autonomy narrative,” analysts noted in commentary published Friday. Investors are increasingly questioning whether the company can scale its autonomous efforts while meeting regulatory and safety expectations.

Market breadth was mixed, with advancing issues outnumbering decliners on the NYSE by 3,997 to 5,881. Notably, new highs outpaced new lows, and over 70% of stocks closed above their 50-day moving averages, a signal of underlying technical strength despite macro headwinds.

Looking ahead, markets may remain volatile as investors weigh geopolitical developments against a backdrop of slowing growth and regulatory friction. The focus will turn next week to Fed Chair Jerome Powell's semi-annual testimony to the House Financial Services Committee on June 24.