The stock market ended a volatile week lower as a broad tech sell-off weighed on major indexes, with the Nasdaq Composite down 4.6% and the S&P 500 down 2% for the week ending Friday, June 26, 2026.
On Friday itself, the S&P 500 and Dow Jones Industrial Average each dipped 0.1%, while the tech-heavy Nasdaq Composite fell 0.2%, according to Investopedia. The weakness capped a fifth consecutive day of declines for both the S&P 500 and Nasdaq, marking the second-largest weekly loss for the Nasdaq in the past year.
The selloff was driven by mounting concerns about the sustainability of massive artificial intelligence spending by tech giants. According to Reuters, investors grew worried about whether the enormous capital expenditures on AI infrastructure would generate sufficient returns. Memory and chip stocks tumbled as investors reassessed valuations in the sector.
A report from The New York Times that OpenAI is considering delaying its initial public offering until next year added to the negative sentiment. The New York Times noted the startup was concerned about market volatility and the poor post-IPO performance of SpaceX, which has retreated more than 30% from its record highs just weeks after its June debut. OpenAI’s possible delay signaled weakening confidence in the tech market more broadly.
Memory and storage stocks bore the brunt of Friday’s selling. Western Digital fell 13%, Seagate Technology dropped 12%, SanDisk shed 10%, and Micron declined 7%, according to Investopedia. Chip makers also retreated, with Broadcom down 4%, Intel sliding 3%, and Advanced Micro Devices falling 2%.
The weakness in tech stocks extended to the broader market. The communications sector, which includes major tech names like Alphabet and Meta, posted a 5.5% weekly decline—the worst-performing sector of the week, followed by the tech sector down 5.2%, according to Investopedia. Defensive sectors including healthcare, utilities, and consumer staples gained ground as investors sought safety.
The Dow Jones Industrial Average managed to eke out a 0.6% weekly gain, notching its third straight winning week, as it proved more resilient than the tech-focused indexes. The Magnificent Seven mega-cap tech stocks showed mixed results on Friday: Microsoft rose 6%, Apple gained 3%, Amazon climbed 2%, and Tesla and Meta each rose more than 1%, while Nvidia and Alphabet each fell about 2%.
According to CBS News, Goldman Sachs estimates tech companies will spend $7.6 trillion through 2031 to build thousands of new data centers to power the rise of AI, yet investors increasingly doubt whether those massive outlays will deliver adequate returns. The BBC reported that the sudden wave of selling in major tech shares triggered doubt over the sustainability of the AI boom itself.
Sources
- Investopedia — Weekly performance of S&P 500, Nasdaq, and Dow; Friday closing prices; sector performance; individual stock moves; OpenAI IPO delay reporting
- WSJ — Weekly percentage losses for Nasdaq and S&P 500
- Reuters — AI spending concerns and their role in the tech selloff
- The New York Times — OpenAI IPO delay, SpaceX performance context
- CBS News — Goldman Sachs AI spending estimate and investor concerns about returns
- BBC — Doubt over sustainability of AI boom
- MarketWatch — Friday closing data
