Weak Job Data Drag US Stocks Lower

(MENAFN) US equity markets closed mostly lower on Wednesday as technology shares continued their decline for a second consecutive day, coupled with weaker-than-expected private sector employment figures for January.

The Dow Jones Industrial Average, however, edged higher, gaining 0.53%, or 260.31 points, to finish at 49,501.30. In contrast, the Nasdaq dropped 1.51%, or 350.61 points, settling at 22,904.58, while the S&P 500 decreased by 0.51%, or 35.09 points, to reach 6,882.72.

Investor anxiety was also reflected in the Volatility Index (VIX), often referred to as the "fear index,” which climbed 3.56% to 18.64 points.

Concerns intensified following Anthropic's unveiling of a new AI tool designed to manage legal tasks, financial assessments, and sales functions, sparking worries that certain businesses could face operational disruptions. As a result, software companies came under pressure. Oracle and CrowdStrike shares declined by 5.1% and 1.5%, respectively.

The semiconductor sector also faced turbulence after AMD’s first-quarter outlook fell short of some analysts’ expectations, prompting the company’s stock to plunge 17.3%, which in turn dragged down the broader market. "AI is accelerating at a pace that I would not have imagined," AMD CEO Lisa Su told a news agency on Wednesday, defending the projections and highlighting that demand has grown in recent months.

Other chipmakers, including Micron Technology and Broadcom, also suffered losses, with shares of Broadcom dropping 3.8% and Micron sliding 9.5%.

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