Wall Street Ends Lower on Big Tech Sell-off

On the 26th (local time), major technology company stocks in the U.S. stock market in New York saw significant drops, leading to a broad market decline. The sell-off was primarily attributed to investors cashing in on recent gains.

The Dow Jones Industrial Average closed at 51,876.11, down 44.51 points (0.09%) from the previous trading day. The S&P 500 index fell 3.47 points (0.05%) to 7,354.02, and the tech-heavy Nasdaq Composite index closed at 25,297.62, down 60.99 points (0.24%). The Nasdaq index has now fallen for five consecutive trading sessions. Attempts to rebound in early trading were erased by selling pressure in large-cap tech stocks. Selling pressure was concentrated in semiconductor and artificial intelligence (AI) related stocks that have recently led the market rally. The Philadelphia Semiconductor Index plunged 5.3%. News that ChatGPT developer OpenAI is considering postponing its initial public offering (IPO) to next year also impacted investor sentiment.

The market observed a rotation of funds into cyclical and small-cap stocks amid expectations of economic recovery. The S&P 500 Equal Weight Index hit a new all-time high.

International oil prices fell sharply as concerns over supply shortages eased. Brent crude futures for August delivery closed at $71.99 a barrel, down 4.34% from the previous session, while U.S. West Texas Intermediate (WTI) futures settled at $69.23 a barrel, down 3.74%.

Gold, considered a safe-haven asset, showed strength. International spot gold prices traded at $4,071.81 per ounce, up 1.1% from the previous trading day.

In the cryptocurrency market, Bitcoin rose 0.7% to $59,755.62 from the previous trading day, and Ethereum also saw a rebound, trading up 1.1% at $1,575.93.