US equity indexes decline as rotation out of technology continues

US equity indexes declined on Friday as investors rotated out of technology stocks for a second consecutive day, with semiconductor and software names leading the drop among mega-cap companies. The Nasdaq Composite fell 1.5% to 26,307.8, while the S&P 500 declined 0.7% to 7,686.4 after midday trading. The Dow Jones Industrial Average dropped 0.3% to 52,042.1, reversing earlier gains during the session. Materials, consumer staples, and financials led the gainers, while communication services ranked among the worst performers. The PHLX Semiconductor Index slumped 2.1%, marking its eighth straight day of losses. According to data compiled by Finviz, the vast majority of the bottom 20 names among stocks with market capitalizations exceeding $200 billion were technology firms. Palo Alto Networks (PANW) led the decliners, falling 7.5%. Bloomberg reported that CoreWeave (CRWV) co-founders Michael Intrator, Brian Venturo, and Brannin McBee have divested $3.3 billion in company stock since the firm's March 2025 initial public offering, a figure that includes $2.4 billion in sales during 2026. CoreWeave shares sank over 11%, extending losses from earlier in the week as concern mounted around its debt and credit risk.