S&P 500 and Nasdaq fell on Friday and headed ​for weekly losses, as worries over AI spending overshadowed fresh corporate earnings, while investors also weighed new tariffs and mounting risks from the Middle East war.

The S&P 500 and the Nasdaq were on track for a second straight weekly loss, while the Dow was set for a third consecutive ‌week of declines.

Intel ⁠added to ⁠this week's key earnings reports, forecasting quarterly profit and revenue above Wall Street estimates and outlining plans to increase spending over the next two years. The ​chipmaker's shares fell 3.8% despite upbeat results.

The broader semiconductor gauge, the Philadelphia SE Semiconductor index, shed 3.1%.

Results from Alphabet and Tesla on Thursdaydeepened concerns ​over AI spending, highlighting rising capital spending and cash burn among major technology companies, setting a cautious tone ahead of next week's earnings from Microsoft, Amazon and Meta.

"With AI remaining the dominant investment theme, markets are becoming increasingly selective, rewarding strong execution while ​showing less tolerance for elevated spending without a clear path to returns," said Daniela ⁠Hathorn, senior ‌market analyst at Capital.com.

The real estate sector rose 2.3% and led the gains on the benchmark index. ​However, losses in ​the heavyweight information technology capped the advances.

Meanwhile, the Trump administration imposed new tariffs of 10% and ⁠12.5% on goods from 60 trading partners, citing lax enforcement of forced-labor bans. ​The move came as a temporary 10% global tariff expired.

Geopolitical risks were in focus after ​U.S. missiles struck targets across Iran on Friday following President Donald Trump's warning of "major military punishment" for Tehran and its Houthi allies in Yemen.

Oil prices surged above $100 a barrel on Thursday as investors reassessed the risk of a prolonged disruption to energy supplies.

Despite prices easing on Friday, a sustained energy shock could rekindle global inflation concerns and prompt central banks to recalibrate monetary policy.

The Federal Reserve is due to meet next week, with markets pricing in a roughly one-in-three chance of a rate hike, ‌up from 12% a week earlier, according to CME's FedWatch tool.

Investors will also watch next week's PCE data, the Fed's preferred inflation gauge, due a day after the policy decision.

At 09:57 a.m. the ​Dow Jones Industrial ​Average rose 93.49 points, or 0.18%, ⁠to 51,805.14, the S&P 500 lost 6.65 points, or 0.09%, to 7,401.65 and the Nasdaq Composite lost 155.55 points, or 0.62%, to 24,982.14.

Data showed that activity in the U.S. services sector accelerated in July, aided in part by spending around the ​FIFA World Cup and the Independence Day holiday, while the pace of growth in the manufacturing sector eased to the slowest since March.

Among others, Verizon added 2.8% as the network provider raised its annual forecast for adjusted profit and free cash flow.

Advancing issues outnumbered decliners by a 1.75-to-1 ratio on the NYSE, while declining issues outnumbered advancers by a 1.1-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and three new lows, while the Nasdaq Composite recorded 30 new highs and 79 new lows.