NEW YORK – U.S. stocks dropped on Friday, with the Nasdaq down more than 1 percent, pressured by declines in semiconductor shares on news chip maker Micron Technology Inc. sees a tough market ahead for some of its key products.
The Dow Jones industrial average was down 39.82 points, or 0.32 percent, at 12,597.81. The Standard & Poor's 500 Index was down 7.83 points, or 0.54 percent, at 1,440.48. The Nasdaq Composite Index was down 25.66 points, or 1.03 percent, at 2,463.01.
A rise in oil prices above $60 a barrel added to the negative tone, analysts said.
Micron shares registered their biggest one-day percentage slide in more than 3 months. The stock was down 3 percent at $12.50.
"Micron came out with an announcement talking about softness in NAND flash, and when that came out, the semis just deteriorated," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
NAND flash refers to the kind of memory chip found in digital music players, cameras and other devices.
Shares of Intel Corp. (INTC), the world's largest chip maker, fell 1.4 percent to $21.07, making Intel one of the biggest drags on all three indexes.
A semiconductor stock index that includes Micron fell 1 percent.
U.S. crude oil futures rose to $60.75 a barrel, renewing concerns about higher energy costs.