Nasdaq Drops as OpenAI Considers Delaying IPO

The Nasdaq Composite closed at 25,297.62 on Friday, marking a fifth consecutive session of losses and a weekly decline of approximately 4.6%. This downturn resulted from investors rotating capital out of artificial intelligence stocks and into defensive sectors, including healthcare and financials.

Market pressure intensified after reports surfaced that OpenAI is considering postponing its initial public offering until 2027. The company cited broader AI volatility and weak performance by SpaceX as primary reasons for the potential delay. Additionally, the company announced it is restricting the release of its latest model following a request from the U.S. government to mitigate cybersecurity risks.

Broader economic headwinds contributed to the volatility. New inflation data from the United States Department of Commerce and comments from Minneapolis Federal Reserve President Neel Kashkari weighed on the market. Kashkari shifted his outlook to suggest a potential interest rate hike could occur by the end of 2026. In contrast to the tech slump, the Dow Jones Industrial Average rose roughly 0.6% over the week.