NEW YORK, June 26, 2026, 16:02 (EDT)
- S&P 500, Dow, and Nasdaq slipped in late trading, according to early after-hours figures.
- Nearly $20 billion left tech sector funds for the week, wiping out last week’s record inflow.
- Nasdaq 100 dropped harder than the main Nasdaq, with the biggest growth stocks under pressure.
- Jobs numbers out next week could heat up the rate-hike debate.
U.S. stocks closed a bit down Friday, but the story was in tech funds. Outflows sped up, overshadowing the index’s modest drop.
S&P 500 slipped 0.06% to 7,353.21 after the bell, with the Dow Jones Industrial Average edging down 0.09% to 51,873.95. Nasdaq Composite fell 0.24% to 25,297.62. Nasdaq 100 dropped 1.09%, a bigger decline than the broader Nasdaq. Russell 2000 gave up 0.42%.
U.S. equity funds saw $3.53 billion in outflows in the week ended June 24, snapping back from $37.63 billion of inflows the previous week, according to LSEG Lipper. Tech funds lost almost $20 billion after picking up $21.46 billion the week before—a round-trip of about $41 billion in a trade that’s defined most of this year.
S&P 500 moves stayed muted, even as money in the AI trade started to dry up. If the flow numbers lead to more selling, minor index swings could hide the real risk in some of the biggest tech and chip names.
Chip stocks extended losses. The PHLX semiconductor index dropped over 4% and looked headed for a weekly decline of about 7%, the worst since March, according to Reuters. Apple Inc NASDAQ:AAPL rebounded after it slipped Thursday on the back of its more expensive iPads and MacBooks. Micron Technology Inc NASDAQ:MU didn’t catch a break, staying down even though earlier strong results had steadied chip names for a short time.
David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, told Reuters, “profitability and the capex story are certainly not going away.” Art Hogan at B. Riley Wealth said Apple’s price hikes showed “renewed inflationary pressure.” Reuters
Moderna Inc NASDAQ:MRNA jumped 12.79% late, topping S&P 500 gainers in the split tape after its investor event. ON Semiconductor Corp NASDAQ:ON dropped 23.84% and was the S&P 500’s biggest loser. ON agreed to buy Synaptics Inc NASDAQ:SYNA in an all-stock deal worth about $7 billion.
Healthcare outperformed as chip stocks dropped, giving funds cover during the tech selloff. Reuters reported the S&P 500 healthcare index gained 2.5%, leading all 11 S&P sectors. That was enough to stop the wider market from falling as much as chips.
Tech struggled with the rates outlook. A Reuters poll showed over three-quarters of economists see the Federal Reserve keeping rates at 3.50% to 3.75% through 2026, but markets still priced in hikes after inflation topped 4%. Stephen Juneau at Bank of America said the Fed’s “reaction function has turned.” Reuters
Payrolls data due next week is the next test for markets. Doug Huber, deputy chief investment officer at Wealth Enhancement, told Reuters that a strong jobs report may not land as a positive for stocks if it stirs fears the economy is running too hot. Brad Conger, Hirtle & Co.’s chief investment officer, said jobs numbers can “tilt the Fed” in either direction. Reuters
Stocks got a lift from cheaper oil, but tech stayed under pressure. Brent crude lost 4.24% to $72.07 a barrel as supply worries faded, according to Reuters. Cheaper oil may help cool inflation, but investors on Friday were more tuned in to chip prices, AI budgets and debt-fueled growth stories.
U.S. markets open for trading next week, but close Friday, July 3, for the observed Independence Day holiday. Nasdaq says July 3 is a market holiday in its 2026 schedule. Usual trading hours for Nasdaq are 9:30 a.m. to 4:00 p.m. Eastern.
Related articles: NASDAQ:AAPL
