The Nasdaq composite fell 159.91 points, or 0.60%, to close at 26,445.45, the weakest showing among the major US indices. Technology and growth names led the retreat while small caps bucked the trend, and Alphabet extended its slide as scrutiny of its AI leadership continued.
Tech names drag the Nasdaq to the bottom
The Nasdaq composite dropped 0.60%, making it the day's weakest major index. The Dow industrial average fell 184.02 points, or 0.34%, to 53,797.39. The S&P 500 slipped 24.94 points, or 0.32%, to 7,728.18, and weakness was particularly pronounced across technology and growth names.
On Holding led decliners with a 20.29% drop, far outpacing the rest of the market. AppLovin, Datadog and Alphabet were also under significant pressure, and Dell, Oracle and Adobe each fell more than 3%, adding to the broader tech-sector weakness.
Alphabet extends its slide
Alphabet fell 3.84% on the day, among the steeper declines in the session. The stock's weakness follows a shakeup last week among Google's top AI and technology leadership. This has fed concern in the market that Gemini will never catch up, even as the company touts 1 billion users.
Elsewhere, a $500 billion AI capex fundraising push lifted asset managers, with KKR up 6.43% and Apollo up 6.06%. Nebius, Alcoa and Vertiv each rose more than 4%, with AI infrastructure and semiconductor names well represented among the day's winners.
Small caps buck the trend
The Russell 2000 rose 9.73 points, or 0.32%, to 3,027.13, bucking the broader decline in the small-cap index. The weakness in large caps came as optimism around a potential U.S.-Iran agreement faded and uncertainty over the Strait of Hormuz remained a concern.
Investors are now looking to Wednesday's US CPI report, which could shape expectations for the Fed's September policy decision given recent volatility in crude oil.
Sources: Investinglive, Investinglive
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