US Stocks Fall Amid Tech Slump, Weak January Job Data

(MENAFN) US equities closed mostly lower on Wednesday as technology stocks continued their slide for a second day, coupled with weaker-than-expected private employment figures for January.

The Dow Jones Industrial Average, however, managed a gain of 0.53%, adding 260.31 points to finish at 49,501.30. In contrast, the Nasdaq fell 1.51%, or 350.61 points, closing at 22,904.58, while the S&P 500 lost 0.51%, dropping 35.09 points to end at 6,882.72.

Market volatility, measured by the VIX or “fear index,” rose 3.56% to 18.64 points.

Concerns mounted after Anthropic announced a new AI tool capable of performing legal work, financial analysis, and sales functions, raising fears that such technology could disrupt operations at some companies and putting pressure on software stocks. Oracle and CrowdStrike shares dropped 5.1% and 1.5%, respectively.

Advanced Micro Devices (AMD) saw a 17.3% decline in its shares after its first-quarter guidance fell short of some analysts’ expectations, dragging the broader market lower. AMD CEO Lisa Su defended the company’s performance, telling CNBC: "AI is accelerating at a pace that I would not have imagined," and noting that demand for its products has risen in recent months.

Other semiconductor companies also experienced declines, with Broadcom falling 3.8% and Micron Technology sliding 9.5%. Palantir Technologies, which had risen nearly 7% earlier in the week after reporting stronger-than-expected earnings, saw its shares drop 11.6% on Wednesday.

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