S&P 500, NASDAQ open lower as tech stocks face pressure

Nasdaq: The Nasdaq, particularly the technology-heavy Nasdaq Composite and Nasdaq-100, is an equity-market benchmark with substantial exposure to technology, semiconductor, and growth companies. It came under heavier pressure than the S&P 500 as investors sold technology and chip stocks amid higher-rate concerns, competition worries, and an ongoing pullback in the AI trade. S&P 500: The S&P 500 is a broad U.S. large-cap equity index used as a benchmark for the overall stock market. It opened lower as technology-sector weakness, elevated rate-hike expectations after hot inflation data, and concerns about AI spending pressured investor sentiment. AI trade: Recent market commentary linked the technology selloff to concerns about companies overspending on artificial intelligence after a strong AI-driven advance. Market breadth: The recent rally has been concentrated in AI-related technology shares, while many other S&P 500 constituents have posted much smaller gains or declined, highlighting narrow market leadership. Inflation and rates: A hotter-than-expected inflation reading increased market expectations that the Federal Reserve could raise interest rates later in the month, weighing especially on growth-oriented technology stocks.