US stock markets this week: US stock markets ended a volatile week on a mixed note, with technology stocks under pressure amid concerns over artificial intelligence (AI) spending, rising infrastructure costs and changing expectations for US interest rates.

For the week ended June 26, the Dow Jones Industrial Average outperformed its peers, gaining about 0.6% to close at a record high. The broader S&P 500, however, declined 2.0%, while the tech-heavy Nasdaq Composite tumbled 4.6%, reflecting sustained pressure on semiconductor and large-cap technology stocks.

US markets on Friday

Friday’s session capped off a turbulent week, with US equities closing lower as chipmakers extended their losses. Technology stocks remained under pressure after fresh concerns emerged over escalating memory and storage costs, while uncertainty surrounding AI-related investments continued to weigh on investor sentiment.

On Friday, the Nasdaq Composite slipped another 0.2%, while the S&P 500 also edged lower, extending weekly losses of more than 4% and nearly 2%, respectively. The Dow Jones Industrial Average, which has lower exposure to technology stocks, also ended Friday in negative territory but still managed to post a weekly gain of less than 1%.

Semiconductor companies led the decline, with Broadcom falling about 3.7%. Although Micron Technology sparked a brief rally earlier in the week after issuing stronger-than-expected guidance, its results also highlighted rising costs across the memory chip industry, reinforcing concerns that higher component prices could hurt device manufacturers.

Apple also came under pressure after increasing prices for its MacBooks and iPads, with its shares falling more than 6% during the week. Investors worried that higher hardware costs could weigh on consumer demand and corporate profitability across the broader technology sector.

Another factor dampening sentiment was a report by The New York Times stating that OpenAI is considering delaying its planned mega initial public offering until 2027. The report added to the headwinds facing AI-linked stocks at a time when investor enthusiasm for the sector has already begun to cool.

Why are US stocks markets falling?

A key reason that weighed on technology stocks was changing expectations around US monetary policy. Investors continued to assess the possibility of another Federal Reserve interest-rate hike after May’s Personal Consumption Expenditures (PCE) index, the central bank’s preferred inflation measure, came in hotter than expected. The stronger inflation reading reinforced expectations that policymakers could keep interest rates higher for longer.

Meanwhile, oil prices declined sharply during the week, offering some relief on the inflation front. US crude prices dropped 8.7% to settle below $70 per barrel, while Brent crude traded near $72 a barrel and West Texas Intermediate (WTI) hovered around $69.

The decline came as tanker traffic continued through the Strait of Hormuz despite an attack on a container ship. Although the US and Iran have agreed to a 60-day ceasefire, reports of disruptions in the strategic waterway have continued, with Tehran considering transit charges for ships passing through the route.

The sharp fall in crude prices helped ease inflation concerns, but it was not enough to offset the selling pressure in technology stocks, leaving Wall Street to finish the week with sharply divergent performances across the major indices.

(With inputs from agencies)