The three major U.S. stock indices closed lower as concerns over high valuations in the tech sector and profit-taking continued to weigh on the market.

In the New York stock market, the Dow Jones Industrial Average fell 44.51 points (0.09%) to close at 51,876.11.

The S&P 500 index dropped 3.47 points (0.05%) to 7,354.02, while the tech-heavy Nasdaq Composite index declined 60.99 points (0.24%) to 25,297.62.

The Nasdaq index has now fallen for five consecutive trading sessions.

Although some bargain hunting emerged early in the session, gains were erased as selling pressure centered on large-cap tech stocks intensified. By the end of the day, both the Dow and the S&P 500 had shifted into negative territory.

In particular, major semiconductor and artificial intelligence (AI) stocks that had been leading the market recently faced heavy selling pressure, with the Philadelphia Semiconductor Index falling 5.3%.

Additionally, reports that OpenAI, the developer of ChatGPT, is considering delaying its initial public offering (IPO) until next year weighed on investor sentiment in the tech sector.

The New York Times (NYT) cited internal sources as saying that OpenAI is discussing a plan to postpone its IPO, which was originally targeted for within this year, to next year.

Beyond the fluctuations of the indices, the rapid rotation of Wall Street investors was also notable.

As positive signals regarding economic recovery continue to emerge, capital is shifting toward sectors and small-to-mid-cap stocks that had previously been overlooked.

The S&P 500 Equal Weight Index hit an all-time high on this day, demonstrating that the broader market is not solely dependent on large-cap tech stocks.

Unlike the standard S&P 500 index, which is calculated based on market capitalization, the S&P 500 Equal Weight Index assigns the same weight to all stocks, reducing the influence of large-cap companies.

International oil prices plummeted as concerns over supply shortages eased due to increased traffic through the Strait of Hormuz and the resumption of shipments from Saudi Arabia.

Brent crude and West Texas Intermediate (WTI) futures for August delivery closed at $71.99 and $69.23 per barrel, down 4.34% and 3.74%, respectively.

Amid the sharp drop in oil prices, U.S. Treasury yields also fell.

The yield on the 10-year U.S. Treasury note traded at 4.37%, down 2 basis points (1bp=0.01% percentage point) from the previous day.

The Bloomberg Dollar Spot Index, which tracks the value of the dollar against six major currencies, remained largely unchanged.

Gold prices rose.

The international spot price of gold traded at $4,071.81 per ounce, up 1.1% from the previous session.

Cryptocurrencies, which had been on a downward trend, saw a slight rebound.

Bitcoin traded at $59,755.62, up 0.7% from the previous day, while Ethereum rose 1.1% to $1,575.93.

Experts assessed the recent consecutive corrections in tech-heavy stocks as a healthy breather, suggesting a shift in the market's center of gravity.

Mark Hackett of Nationwide noted that consumer spending and corporate investment remain solid and earnings forecasts continue to rise, suggesting that the recent volatility is a corrective process for further gains.

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