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U.S. Stocks Close Wednesday Lower as Tech Stocks Extend Downturn
(MENAFN) US equity markets closed predominantly in negative territory Wednesday as technology stocks extended their downturn into a second consecutive session while private employment figures for January fell significantly short of analyst projections.
The Dow Jones Industrial Average gained 0.53%, advancing 260.31 points to settle at 49,501.30.
Conversely, the Nasdaq tumbled 1.51%, shedding 350.61 points to finish at 22,904.58, while the S&P 500 dropped 0.51%, losing 35.09 points to end at 6,882.72.
The Volatility Index (VIX), commonly referred to as the "fear index," climbed 3.56% to reach 18.64 points.
After Anthropic's unveiling of an advanced AI platform designed to execute legal tasks, financial evaluations, and sales functions, anxiety mounted that certain corporations' business operations face potential disruption, triggering downward pressure across software sector equities.
Oracle and CrowdStrike shares plunged 5.1% and 1.5%, respectively.
AMD stock crashed 17.3% after the chipmaker's first-quarter outlook disappointed Wall Street analysts, dragging broader market indices lower.
"AI is accelerating at a pace that I would not have imagined," AMD CEO Lisa Su told CNBC on Wednesday, defending the figures and pointing out that the firm has seen a rise in demand in recent months.
Additional semiconductor industry players including Micron Technology and Broadcom also suffered setbacks, with the former sliding 9.5% and the latter falling 3.8%.
Palantir Technologies, whose stock surged nearly 7% earlier this week following an earnings beat, reversed course with an 11.6% decline Wednesday.
Within the pharmaceutical arena, Eli Lilly's shares soared 10.4% after fourth-quarter revenues and annual profits surpassed Wall Street estimates alongside optimistic 2026 guidance.
Regarding economic indicators, ADP's private nonfarm payrolls increased by just 22,000 in January, dramatically underperforming market consensus of 46,000. Throughout 2025, private sector employers generated only 398,000 positions, down sharply from 771,000 in 2024.
Separately, domestic rare earth mining companies' valuations collapsed after the US Trade Representative's disclosure of initiatives to implement price floor mechanisms with international partners. USA Rare Earth and MP Materials experienced drops of 9% and 6%, respectively.
President Donald Trump stated Wednesday there was "not much" doubt in his mind that interest rates would soon be lowered.
"I just think they're going to be lowered. I mean, they should be lower," Trump told media.
He emphasized that he would not have picked Kevin Warsh to lead the Federal Reserve if he wanted to raise rates.
The Dow Jones Industrial Average gained 0.53%, advancing 260.31 points to settle at 49,501.30.
Conversely, the Nasdaq tumbled 1.51%, shedding 350.61 points to finish at 22,904.58, while the S&P 500 dropped 0.51%, losing 35.09 points to end at 6,882.72.
The Volatility Index (VIX), commonly referred to as the "fear index," climbed 3.56% to reach 18.64 points.
After Anthropic's unveiling of an advanced AI platform designed to execute legal tasks, financial evaluations, and sales functions, anxiety mounted that certain corporations' business operations face potential disruption, triggering downward pressure across software sector equities.
Oracle and CrowdStrike shares plunged 5.1% and 1.5%, respectively.
AMD stock crashed 17.3% after the chipmaker's first-quarter outlook disappointed Wall Street analysts, dragging broader market indices lower.
"AI is accelerating at a pace that I would not have imagined," AMD CEO Lisa Su told CNBC on Wednesday, defending the figures and pointing out that the firm has seen a rise in demand in recent months.
Additional semiconductor industry players including Micron Technology and Broadcom also suffered setbacks, with the former sliding 9.5% and the latter falling 3.8%.
Palantir Technologies, whose stock surged nearly 7% earlier this week following an earnings beat, reversed course with an 11.6% decline Wednesday.
Within the pharmaceutical arena, Eli Lilly's shares soared 10.4% after fourth-quarter revenues and annual profits surpassed Wall Street estimates alongside optimistic 2026 guidance.
Regarding economic indicators, ADP's private nonfarm payrolls increased by just 22,000 in January, dramatically underperforming market consensus of 46,000. Throughout 2025, private sector employers generated only 398,000 positions, down sharply from 771,000 in 2024.
Separately, domestic rare earth mining companies' valuations collapsed after the US Trade Representative's disclosure of initiatives to implement price floor mechanisms with international partners. USA Rare Earth and MP Materials experienced drops of 9% and 6%, respectively.
President Donald Trump stated Wednesday there was "not much" doubt in his mind that interest rates would soon be lowered.
"I just think they're going to be lowered. I mean, they should be lower," Trump told media.
He emphasized that he would not have picked Kevin Warsh to lead the Federal Reserve if he wanted to raise rates.
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