US sharemarkets closed lower on Friday as investors continued rotating out of technology stocks and into more defensive sectors, extending recent weakness across semiconductor and artificial intelligence-related shares.
The Nasdaq Composite fell 0.24% to 25,297.62, marking its fifth consecutive decline. The S&P 500 eased 0.05% to 7,354.02, while the Dow Jones Industrial Average slipped 44.51 points, or 0.09%, to 51,876.11.
For the week, the S&P 500 lost almost 2%, while the Nasdaq dropped 4.6%. The Dow outperformed, gaining 0.6%.
Chip stocks remained under pressure after reports OpenAI is considering delaying its planned IPO until next year, citing volatility in AI-related stocks and the weak post-listing performance of SpaceX. Micron Technology fell more than 6%, Intel lost over 3%, and Advanced Micro Devices declined 2%.
Investors continued rotating into more defensive sectors. Healthcare led gains, with Eli Lilly rising 7%, while Johnson & Johnson and AbbVie each climbed around 4%. Consumer staples, financials and utilities also finished higher.
Despite the technology weakness, stronger-than-expected US consumer sentiment data and an improved inflation outlook provided some support for broader markets.
Australian Market Outlook
Australian shares are expected to open modestly higher as investors position for the start of the new financial year, despite ongoing geopolitical uncertainty and weakness across global technology stocks.
S&P/ASX 200 futures are pointing to a gain of around 0.2% at the open.
Market attention is likely to remain focused on developments in the Middle East after renewed hostilities raised concerns about global energy supplies and inflation.
Locally, investors will also be watching for the release of the Reserve Bank of Australia’s June meeting minutes later this week for further clues on the outlook for interest rates.
