The Nasdaq Composite recorded its fifth consecutive daily decline on Friday as investors sold off key technology stocks and rotated into more defensive sectors of the market.

The Dow Jones Industrial Average fell 44.51 points, or 0.09%, to close at 51,876.10. The Nasdaq Composite dropped 60.98 points, or 0.24%, to 25,297.61. The S&P 500 index declined 3.47 points, or 0.05%, to 7,354.02.

For the week, the S&P 500 lost nearly 2%, while the Nasdaq fell 4.6% over the same period. The Dow Jones outperformed the broader market, posting a weekly gain of 0.6%.

Chip stocks faced selling pressure following reports that OpenAI is considering delaying its initial public offering until next year, citing the poor post-listing performance of SpaceX and heightened volatility in artificial intelligence-related equities.

JPMorgan traders noted in a report that the news has raised concerns about the "sustainability of its infrastructure spending given the delay in capital market funding."

Adam Crisafulli of Vital Knowledge stated that an OpenAI IPO delay "could slow the pace of infrastructure spending."

Micron Technology (MU) shares fell more than 6%, while Advanced Micro Devices (AMD) declined 2%. Intel (INTC) shares dropped over 3%.

The sell-off was particularly pronounced in Asia. As a major backer of OpenAI, SoftBank Group led declines in Asian markets on Friday, plunging over 12%. South Korean markets closed sharply lower, with the benchmark Kospi index falling 5.81% to 8,411.21 and the Kosdaq dropping 4.10% to 851.37, as broad-based tech stock selling swept the region.

Ross Mayfield, an investment strategist at Baird, suggested the sector rotation could "persist into July," partly because some chip stocks had already "run too far." However, he remains bullish on the sector over the longer term.

"I would still bet on chips and AI infrastructure outperforming over the next twelve months because the demand is just so strong," he said. Mayfield added that while "some laggards might see a bit of a catch-up trade, I don't think it's a full-blown rotation where AI infrastructure-related stocks become the laggards for the next twelve months or something like that."

As investors exited chip stocks and continued buying into healthcare shares, the S&P 500 information technology sector fell 1% on the day. The healthcare sector had been a standout performer in the previous session. Eli Lilly (LLY) shares rose 7%, Johnson & Johnson gained nearly 4%, and AbbVie advanced more than 4%.

Beyond healthcare, consumer staples, financials, and utilities were also among Friday's gainers. The consumer staples sector rose nearly 1%, while financials and utilities gained 0.8% and 0.4%, respectively.

Better-than-expected consumer confidence data and improving inflation expectations provided some support to the market on Friday. This came despite comments from Minneapolis Federal Reserve President Neel Kashkari, who stated he now expects one interest rate hike to be necessary this year due to rising inflation stemming from the Middle East conflict.

Oil prices closed lower on Friday, even as former U.S. President Donald Trump stated that Iran had violated a ceasefire agreement with the United States.