The stock market posted significant weekly losses as a deepening technology sell-off was fueled by a report that OpenAI may delay its initial public offering until 2027. The S&P 500 fell 2.05% for the week while the Nasdaq lost 4.7%, marking the tech-heavy index’s worst week in over a year, according to Reuters on June 26.
OpenAI’s reported decision to postpone its public debut stems partly from concerns over SpaceX’s rocky market debut earlier this month. SpaceX went public in the largest IPO ever but saw its shares drop 24% over six trading sessions, falling from a peak of over $225 to around $151, according to Barron’s. That performance spooked OpenAI executives who were eyeing a $1 trillion valuation for their own listing.
The IPO delay rippled across markets. SoftBank shares fell 13% in Tokyo after the New York Times reported OpenAI was leaning toward waiting until 2027, citing three people involved in the company’s deliberations. SoftBank holds about $65 billion in OpenAI, representing roughly 13% of the AI company’s ownership. Oracle and CoreWeave, which have major infrastructure deals with OpenAI, also fell on the news, with Oracle down 1.7% and CoreWeave dropping nearly 4%, per Barron’s.
The broader tech sell-off reflects investor doubts about whether massive spending on artificial intelligence infrastructure will deliver returns. Chip stocks bore the brunt of the decline, with the semiconductor index falling 7.9% for the week—its worst week since early April, according to Reuters. Investors have grown concerned about hyperscalers’ debt-funded AI spending and questioned whether the valuations of AI-linked mega-cap technology stocks remain justified.
The sell-off marks a sharp reversal from earlier in the year. Before the June decline, the Nasdaq had rallied roughly 30% since early June, fueled by enthusiasm over artificial intelligence. But the momentum stalled as investors questioned the sustainability of the AI boom. The New York Times reported that OpenAI had confidentially filed for an IPO on June 9 but noted it “may be a while” before the company goes public, a signal that executives were reconsidering their timeline.
OpenAI’s hesitation to proceed with a 2026 listing reflects broader market caution. Financial advisers presented executives with a choice: wait until 2027 to potentially reach the $1 trillion valuation or accept a lower valuation to go public sooner. CEO Sam Altman reportedly views any valuation under $1 trillion as a “nonstarter,” according to reports cited by multiple outlets including Investor’s Business Daily.
Sources
- Reuters — S&P 500 and Nasdaq weekly losses, chip stock declines for the week ending June 26, 2026
- The New York Times — OpenAI’s consideration of IPO delay until 2027, confidential IPO filing on June 9
- Barron’s — SpaceX stock decline, SoftBank share drop, Oracle and CoreWeave performance, SoftBank’s OpenAI ownership stake
- Yahoo Finance — SpaceX stock price movement from IPO peak to decline
- NBC News — Investor concerns about sustainability of AI spending and rising inflation
- Reuters — Hyperscalers’ debt-funded AI spending concerns
- Investor’s Business Daily — OpenAI executives’ $1 trillion valuation stance
