Us Stock Market Opens Lower As S P 500 Holds Steady Nasdaq Slips On Openai Ipo Delay

. Shortly after the opening bell (9:30 a.m. ET), the S&P 500 fell 0.7%. The Nasdaq Composite dropped 1.1% at the open.

The tech-heavy index was the biggest loser among the three major indexes. The Dow Jones Industrial Average fell 237 points, or 0.5%, soon after trading began. Later in the trading session, losses became smaller. The S&P 500 and Dow traded near the flat line, while the Nasdaq was down about 0.3%.

Investors became worried after a report said OpenAI may delay its IPO until next year, as per New York Times. The report said OpenAI is thinking about delaying its IPO because of SpaceX's weak stock performance after its market debut and the recent volatility in AI-related stocks.

The possible IPO delay raised concerns that AI companies may spend less on expensive infrastructure in the future. JPMorgan traders said the delay in raising money from public markets could make companies rethink whether current AI infrastructure spending is sustainable.

Chip stocks came under pressure after the report. Investors sold shares of companies linked to AI hardware. Micron Technology shares fell about 2%. Advanced Micro Devices (AMD) also dropped around 2%. Intel shares declined about 2% as well. Oracle shares fell more than 1%. The technology sell-off was even stronger in Asian markets.

SoftBank Group, one of OpenAI's major backers, fell more than 12%, leading losses in Asia.

JPMorgan Chase upgraded H.B. Fuller stock to “overweight” from “neutral” on Friday, meaning it now expects better performance than before.

The University of Michigan survey showed that U.S. consumer sentiment rose in June, but overall confidence is still weak. The sentiment index came in at 49.5, slightly above expectations of 49.0 and higher than May by about 10.5%. Both current conditions and future expectations improved, showing consumers felt slightly better about the economy.

One-year inflation expectations fell to 4.6%, down 0.2 percentage points from May, showing short-term price fears cooled a bit. Five-year inflation expectations dropped sharply to 3.3%, down 0.6 percentage points, showing long-term inflation fears eased more strongly. Survey director Joanne Hsu said people are less worried about long-term damage from the Iran conflict, which helped improve expectations for business conditions. However, she also said sentiment is still weak, about 13% below February 2026 levels and nearly 20% lower than a year ago.

Diageo was upgraded to “buy” from “hold” by TD Securities, with a new price target of $93 from $88. Analyst Seamus Cassidy said Diageo is attractive because its valuation is low after weak performance in the U.S. spirits market. The bank expects Diageo to improve sales slightly, gain market share in the U.S., and expand margins through pricing and premium products. It also expects better-than-expected effects from tariffs and maintains cautious but steady growth forecasts for 2026.

In premarket trading, Rocket Lab rose 1.5% after NASA selected it for two launch missions. The missions will study the Sun’s energy impact on Earth and investigate ice cloud formation in the atmosphere.

ON Semiconductor announced an all-stock deal to buy Synaptics for about $7 billion, its biggest acquisition ever. ON Semiconductor said the deal will expand its market opportunity by about $30 billion. After the news, ON Semiconductor shares fell more than 15%, while Synaptics shares rose about 2.5%.

Memory chip stocks were weak as selling continued in tech stocks during premarket trading. Micron Technology fell more than 4.5% after jumping nearly 16% the previous day after earnings. SanDisk also dropped about 4.5% in the same sell-off. Seagate Technology and Western Digital each fell around 3.5% in premarket trading.

Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events. She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard. Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives. For her, both journalism and art are ways to understand the world and tell stories that matter.Read More