The Nasdaq Composite and S&P 500 ended lower Wednesday as another pullback in technology stocks outweighed gains across several other parts of the U.S. market, extending a week of volatility tied to AI valuations, rate expectations and shifting energy prices.

The Dow Jones Industrial Average rose 182.06 points, or 0.35%, to 51,848.90, helped by travel, industrial and consumer discretionary shares. The S&P 500 lost 7.24 points, or 0.10%, to 7,358.22. The Nasdaq Composite, which is more heavily weighted toward technology and growth companies, fell 110.40 points, or 0.43%, to 25,476.64.

The split reflected a market that was not broadly risk-off but remained wary of the companies most associated with the AI trade. Technology shares slipped as investors continued to question whether valuations for semiconductor, software and hyperscale cloud names had moved too far ahead of near-term earnings. The weakness came after a sharp selloff earlier in the week, with Reuters reporting that concerns over debt-backed hyperscaler spending and expectations for a more hawkish Federal Reserve had erased more than $1 trillion in market value from the Nasdaq 100.

That pressure kept attention on chipmaker Micron Technology, whose earnings arrived after the closing bell. Micron closed down 0.3% in regular trading despite a gain of more than 200% in 2026. After the close, however, the stock jumped in extended trading after quarterly revenue and fourth-quarter forecasts beat Wall Street estimates, a move that helped revive some confidence in AI-related chip demand late in the day.

Other chip-linked names showed how sensitive the market remains to profit expectations. Cerebras Systems tumbled 19.6% after the chip designer forecast that full-year profit margins would fall below first-quarter levels in its first report after going public. Reuters also reported that the stock was pressured by OpenAI’s announcement of an in-house inference chip called Jalapeño, adding another competitive concern for investors evaluating standalone AI hardware companies.

The selling was not limited to smaller technology names. AP reported that Microsoft fell 2.3% and Oracle dropped 4.6%, making large technology companies a major drag on the broader market. Alphabet slipped 0.2% ahead of its expected addition to the Dow, though its weight in the S&P 500 remains more important for most investors because of the scale of passive assets tied to that benchmark.

Outside technology, market breadth was stronger. Six of the 11 major S&P 500 sectors ended higher, led by industrials, which rose 1.2%. Consumer discretionary shares gained 0.8%, providing another offset to weakness in technology and energy. On the New York Stock Exchange, declining issues narrowly outnumbered advancers by a 1.03-to-1 ratio, while Nasdaq decliners outpaced advancers by a 1.08-to-1 ratio.

Lower oil prices were a key support for travel-related stocks. Crude fell to its lowest level since the start of the Iran war as more tankers were expected to move out of the Strait of Hormuz and U.S. officials signaled reduced pressure around shipping tolls. The S&P 500 passenger airlines index gained 5.2%, while travel companies including Expedia Group and Booking Holdings rose.

The decline in oil also helped reduce some immediate inflation anxiety, although energy shares suffered. AP reported that Brent crude fell 3.8% to $73.87 a barrel, while U.S. crude dropped 3.9% to $70.34. Exxon Mobil fell 2% and Chevron lost 2.6%, placing major oil producers among the session’s laggards.

Homebuilders were among the standout gainers after President Donald Trump canceled a planned signing of bipartisan legislation aimed at speeding up the availability of affordable housing. Hovnanian Enterprises jumped 11.3%, PulteGroup rose 7.2% and Toll Brothers gained 6.7%. AP also noted strength in KB Home and D.R. Horton, reflecting investor expectations that a change in the legislative path could benefit builders.

Company-specific weakness also hit the consumer sector. Hertz sank 40.7% after the car-rental company said it expected second-quarter adjusted core earnings near the lower end of its forecast range and announced a proposed $100 million common stock offering. The decline stood out on a day when falling fuel prices otherwise helped many travel and transportation-linked shares.

Bond yields moved lower, which would normally support growth stocks, but the relief was not enough to reverse technology-sector pressure. AP reported that the 10-year Treasury yield fell to 4.40% from 4.50% late Tuesday, while the two-year yield eased to 4.15% from 4.16%. Traders were still adding to bets that the Federal Reserve could raise rates again by the end of the year, according to Reuters, after previously pricing in a single 25-basis-point increase.

The next major catalyst for markets is Thursday’s Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge. Investors are watching the report for evidence that lower oil prices may be easing inflation pressure or that tariff and energy-related cost increases remain sticky enough to keep policymakers cautious. AP said economists expected the May PCE index to show prices rose 4.1%, which would mark the highest level in three years.

Trading activity remained elevated. Volume on U.S. exchanges reached 25.84 billion shares, above the 20-session average of 22.92 billion. The S&P 500 recorded 25 new 52-week highs and four new lows, while the Nasdaq Composite posted 206 new highs and 177 new lows. The figures pointed to a market still capable of generating leadership beneath the index level, even as large technology stocks continued to dictate the direction of the headline benchmarks.

The session left investors with a more complicated picture than the index moves alone suggested. Falling energy prices, strength in travel stocks and gains among industrials and homebuilders showed that parts of the market were responding positively to easing cost pressures and sector-specific catalysts. But the continued drag from technology reinforced Wall Street’s central question: whether the AI-led rally can keep expanding without stronger evidence that heavy capital spending will translate into durable profits.