Intel's weak outlook drags the Dow as AI earnings loom

The Dow fell about 334 points (roughly 0.7%) to around 49,050 on Friday after Intel issued a downbeat outlook, weighing on risk appetite even as the Nasdaq rose and the S&P 500 paused. Intel’s 17.8% drop came as the company forecast revenue and profit below expectations due to softer demand for server chips used in AI data centers. Investors are eyeing next week’s earnings from the Magnificent Seven, with Nvidia gaining on reports China may order its H200 chips while other tech names were mixed. The Federal Reserve is expected to hold rates at 3.5%–3.75% next week, and data showed steadier, if uneven, domestic momentum with improving consumer sentiment. The Russell 2000 meanwhile remained positive for 2026, signaling broader risk appetite beyond AI names.