US stocks drop as investors fret about potential slowdown in semiconductor companies

• US stocks fell on Friday as investors fret about a potential slowdown in the semiconductor space.
• Reuters reported that Taiwan Semiconductor told its suppliers to delay some order shipments.
• Investors are also turning their attention to the Federal Reserve's meeting next week.

US stocks fell on Friday as investors grew concerned about a potential slowdown in the semiconductor space.

Technology stocks led the decline after Reuters reported that Taiwan Semiconductor told its suppliers to delay some order shipments amid concerns of a slowdown in the space. The iShares Semiconductor ETF sold off by more than 3% on Friday.

The United Auto Workers went on strike against Detroit's top automakers. It represents the first time in history that employees at the Big 3 — Ford, General Motors, and Stellantis — went on strike at the same time. Nearly 13,000 autoworkers are striking for increased pay amid the transition from gasoline-powered cars to electric vehicles.

Investors are now turning their attention to the Federal Reserve's meeting next week. Markets currently expect the Fed to hold interest rates steady as inflation shows signs of cooling down.

Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:

• S&P 500: 4,450.32, down 1.22%

• Dow Jones Industrial Average: 34,618.24, down 0.83% (288.87 points)

• Nasdaq Composite: 13,708.33, down 1.56%

Here's what else happened today:

• US corporate debt defaults surged 176% as the Fed's war on inflation pushes more companies into financial distress.
• Billionaire hedge-fund manager Ken Griffin said he's unsure if the stock market rally can last, adding that he's "a bit anxious" about this year's strong gains.
• Short-seller Jim Chanos is still betting against Tesla saying the stock is "ridiculously overvalued."
• China's house-price slump drags on as Beijing battles to shore up the country's crisis-hit property sector.
• Cocaine is set to become Colombia's top export this year, edging out oil products, according to a note from Bloomberg Economics.
• Nearly 16% of home sale deals in August were canceled, the highest rate since last October, as mortgage rates stay above 7%, Redfin reported.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 0.96% to $91.03 a barrel. Brent crude, the international benchmark, edged up 0.39% to $94.07 a barrel.
• Gold climbed 0.68% to $1,945.90 per ounce.
• The yield on the 10-year Treasury bond rose three basis points to 4.33%.
• Bitcoin fell 0.41% to $26,423.