Tech Drags Nasdaq Down 0.43% as Oil Slide Lifts Airlines
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Nasdaq Composite closed down 110.40 points (0.43%) at 25,476.64, while the S&P 500 slipped 0.10% and the Dow rose 182.06 points (0.35%) to 51,848.90, with declining issues outnumbering advancers on both major exchanges.
- Tech stocks erased more than $1 trillion in market value from the Nasdaq 100 this week, fueled by concerns over debt-backed hyperscaler spending and mounting expectations of a more hawkish Federal Reserve, with traders now betting on a second rate hike by December.
- Cerebras Systems tumbled 19.6% after forecasting full-year profit margins below Q1 figures in its debut post-IPO report, compounded by OpenAI's announcement of its own in-house inference chip called Jalapeño.
- Micron Technology closed down 0.3% despite a 200%+ surge in 2026, then jumped in extended trading after quarterly revenue and Q4 forecasts topped Wall Street estimates.
- Oil prices fell to their lowest since the start of the Iran war as more tankers were expected to move out of the Strait of Hormuz, with Trump saying Iran told Washington no tolls were being sought, pushing the S&P 500 passenger airlines index up 5.2%.
- Homebuilders surged after Trump canceled a planned signing of bipartisan affordable housing legislation, with Hovnanian Enterprises jumping 11.3%, PulteGroup rising 7.2%, and Toll Brothers gaining 6.7%.
- Hertz cratered 40.7% after guiding Q2 adjusted core earnings to the lower end of its forecast range and announcing a proposed $100 million common stock offering.
Why it matters: This week's $1 trillion Nasdaq 100 wipeout reflects growing investor skepticism over the AI spending binge, with OpenAI's in-house Jalapeño chip pressuring Cerebras (-19.6%) and a hawkish Fed shift coinciding with an Iran war-driven oil decline that powered rate-sensitive sectors like airlines (+5.2%) and homebuilders (Hovnanian +11.3%).
