NEW YORK — The S&P 500 and other major indexes closed lower on Aug. 14, dipping from a record high and weighed down by shares of Applied Materials, while investors digested weaker-than-expected retail sales data.

The S&P 500 slipped from its new record high by 0.17 percent on Friday to end the session and trading week at 7,785.76. The Nasdaq fell 0.28 percent to 26,729.16 points, while the Dow Jones Industrial Average ceded 0.20 percent to 53,732.41.

Applied Materials fell 5.1 percent after its upbeat quarterly forecast failed to impress investors. The chip equipment maker’s shares have doubled in 2026 due to strong demand related to the buildout of AI data centers.

With investors nervous about high valuations of AI-related stocks, chipmakers also dropped on Friday, with Broadcom down 5.9 percent and Intel losing 2 percent.

“A lot of the drivers in the market right now are around various parts of AI, and (Applied Materials) is an example of a company that had a ‘beat and raise’ but expectations were high and so the stock sold off,” said Thomas Martin, senior ⁠portfolio manager at Globalt Investments in Atlanta.

Transit through the Strait of Hormuz appeared at a near standstill after two more ships were attacked in the Mideast waterway and the United States said it could maintain a naval blockade of Iran indefinitely. Those developments added to pessimism after a senior Iranian source said Wednesday there had been no progress in talks to build on a June agreement to end the war.

The S&P 500 energy index rallied 1.4 percent, tracking higher oil prices.

Reddit surged almost 13 percent after the social media company was named a new addition to the S&P 500 index, effective Aug. 18.

Workday dipped 3.8 percent after soaring 18 percent on Thursday, whe Reuters reported that private equity firm Silver Lake was in talks to acquire the software firm.

Shares of some drone makers gained after President Donald Trump said he would impose tariffs on imports of drones and their components. Red Cat rallied 8.8 percent and Unusual Machines soared 25 percent.