Major US indices closed lower with tech-heavy Nasdaq leading declines amid broad selling in software and cloud shares.
US equities finished mostly lower, led by a 0.6% decline in the Nasdaq Composite as technology and growth stocks faced widespread pressure. The Dow Jones Industrial Average fell 0.34% to 53,797.39, while the S&P 500 slipped 0.32% to 7,728.18. Small caps bucked the trend, with the Russell 2000 rising 0.32% to 3,027.13.
Weakness was pronounced in tech, with On Holding plunging over 20%, while AppLovin, Datadog, and Alphabet each dropped more than 3%. Dell, Oracle, and Adobe also saw declines exceeding 3%, reflecting broader sector struggles. Gains were scattered across AI infrastructure, semiconductors, and industrials.
The session highlighted a rotation away from high-growth tech, with investors favoring smaller-cap and cyclical names amid shifting market sentiment.