Stock Market Today: Tech Stocks Fall, Materials Sector Down 17% Amid AI Worries and Government Shutdown Fears

Stocks fell for a second day, with the Dow Jones down 0.4%, S&P 500 off 0.3%, and Nasdaq Composite down 0.3%. Materials was the worst performer, led by Freeport McMoran's 17% decline after cutting sales guidance. Tech sector also closed in the red, with Nvidia and Oracle falling for a second day. Micron Technology dropped despite reporting higher-than-expected earnings and strong guidance. Alibaba Group Holding shares rose 8.2% on plans to increase AI spending.

Stocks fell for a second day, with the Dow Jones down 0.4%, S&P 500 off 0.3%, and Nasdaq Composite down 0.3%. Materials was the worst performer, led by Freeport McMoran's 17% decline after cutting sales guidance. Tech sector also closed in the red, with Nvidia and Oracle falling for a second day. Micron Technology dropped despite reporting higher-than-expected earnings and strong guidance. Alibaba Group Holding shares rose 8.2% on plans to increase AI spending.

In a significant move, Nasdaq announced the delisting of securities from multiple companies, signaling regulatory compliance issues and creating significant trading limitations for affected securities. The affected companies include Digital Brands Group, Lipella Pharmaceuticals, ZyVersa Therapeutics, Crown LNG Holdings, Brainstorm Cell Therapeutics, Wag! Group, Ontrak, TPI Composites, Embrace Change Acquisition Corp, and ModivCare. These securities were previously suspended from trading between December 2024 and August 2025 and haven't traded on Nasdaq since their respective suspension dates.

The delistings affect various types of securities including common stocks, warrants, ordinary shares, units, and rights. Nasdaq has announced the formal delisting of securities from 10 different companies whose trading had already been suspended for periods ranging from approximately 1-9 months. This multi-company delisting action affects various security types including common stocks, warrants, ordinary shares, units, and rights.

The affected companies represent diverse sectors including healthcare, manufacturing, energy, consumer services, retail, and SPACs. This formal delisting follows prolonged trading suspensions, indicating these companies likely failed to meet Nasdaq's continued listing requirements. Typical causes include minimum bid price requirements (stock trading below $1 for extended periods), inadequate stockholders' equity, failure to file timely financial reports with the SEC, or falling below minimum market value thresholds.

For shareholders, this delisting creates significant implications. The securities will likely move to over-the-counter (OTC) markets where trading volumes typically decrease dramatically, leading to reduced liquidity, wider bid-ask spreads, and potentially lower valuations. Institutional investors often have mandates preventing ownership of non-exchange-listed securities, forcing additional selling pressure.

Additionally, delisted companies face more limited access to capital markets, reduced analyst coverage, and diminished media attention, creating challenges for future financing and growth. The clustering of multiple delistings in this announcement reflects the challenging market environment where smaller capitalization companies have struggled to maintain exchange compliance.

In other news, Freeport-McMoRan notified commercial counterparties of a force majeure event following a mud rush incident at its Grasberg Block Cave mine in Indonesia. The incident resulted in the deaths of at least two people. Freeport-McMoRan shares were down 10.5% around midday. Alibaba plans to increase its spending on artificial intelligence development as the Chinese e-commerce giant looks to become a "full-stack AI service provider," with shares up 10.2%. Lithium Americas said it is in talks with the US Department of Energy and General Motors over its Thacker Pass lithium joint venture project, with shares up 95.3%. Oracle is looking to raise $15 billion from the US investment-grade bond market, with shares down 2.5%.