Cornerstone OnDemand Inc., which held one of the hottest initial public offerings locally earlier this year, has canceled a planned follow-on offering due to the two-week-old stock market downturn.

In a regulatory filing announced late Monday, the Santa Monica developer of human-resources and employee-training software said that insiders and other early investors who planned to sell more shares on the open market “were unwilling to participate in the offering at current market prices.”

The company had filed for the secondary offering on July 20, saying it planned to offer more than 9.7 million shares. Shares at the time were trading at $17.79, but have since fallen 18 percent. The company debuted on the Nasdaq on March 17, with its first-day gain the largest for a U.S. IPO since December.

Following Standard & Poor’s decision last Friday to downgrade the United States credit rating, the Dow Jones Industrial Average on Monday dropped another 5.6 percent to 10,809.85. The S&P 5000 was off 6.7 percent to 1119.46.

Cornerstone shares closed down 39 cents, or 2.6 percent, to 14.63 on Monday, but rose 2.4 percent in after-hours trading.