Dow Rises as Nasdaq and S&P 500 Slip on Tech Selloff

Technology shares pulled the Nasdaq and S&P 500 lower Wednesday, while falling oil prices lifted airlines, travel stocks and the Dow.

By yourNEWS Media Newsroom

U.S. stocks ended mixed Wednesday as weakness in technology shares weighed on the Nasdaq and S&P 500, while lower oil prices helped lift airlines, travel companies and the Dow Jones Industrial Average.

The technology sector remained under pressure as investors continued to question elevated valuations among companies tied to artificial intelligence and other high-growth areas. The selloff added to a difficult week for the Nasdaq 100, which has lost more than $1 trillion in market value amid concerns over debt-backed spending by hyperscalers and growing expectations that the Federal Reserve could take a more hawkish path.

The S&P 500 fell 5.86 points, or 0.08%, to close at 7,358.72, according to preliminary data. The Nasdaq Composite dropped 104.58 points, or 0.41%, to 25,482.46. The Dow Jones Industrial Average rose 187.97 points, or 0.36%, to 51,854.81.

Oil prices fell to their lowest levels since the start of the Iran war as expectations increased that more tankers would move through the Strait of Hormuz. President Donald Trump said Iran had told Washington it was not seeking tolls on ships traveling through the key waterway.

Lower crude prices helped travel-related stocks, with the S&P 500 passenger airlines index rising.

“The Middle East conversation is wrapping up … energy prices are coming off,” said Michael Monaghan, partner and portfolio manager at Founder ETFs. “But you continue to have the AI CapEx buildout where, for some reason, people like the recipients of the spend and have been punishing those doing the spending.”

Micron Technology drew close attention ahead of its results after the closing bell. The chipmaker’s stock, which has gained more than 200% in 2026, fell during Wednesday’s session.

Cerebras Systems also dropped after the chip designer warned in its first report since going public that full-year profit margins would fall below first-quarter levels. The stock was further pressured after OpenAI announced its own in-house inference chip, called Jalapeño.

Homebuilders moved higher after Trump canceled a planned signing ceremony for bipartisan legislation intended to speed the availability of affordable housing. Shares of Hovnanian Enterprises, PulteGroup and Toll Brothers all rose.

Hertz was among the day’s decliners after the car-rental company said it expects second-quarter adjusted core earnings to come in near the lower end of its forecast range. The company also announced a proposed offering of $100 million in common stock.

Traders increased bets that the Federal Reserve will approve a second rate hike by the end of December, according to CME Group’s FedWatch tool. Markets previously expected only one 25-basis-point increase.

Investors are now looking to Thursday’s release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation measure, for additional signals about the direction of monetary policy.