04.02.202621:01:51UTC+00US Stocks Close Mixed on Wednesday

The S&P 500 ended the trading session down 0.3%, while the Nasdaq saw a decline of 1.6%, furthering its downward trend on Wednesday. Persistent weakness in the technology sector contributed to a broader cautious sentiment in the market. Semiconductor stocks experienced heightened selling pressure following a 17.3% drop in AMD's shares due to a disappointing forecast, resulting in significant losses for other chip makers, including Micron (-9.5%), Broadcom (-3.8%), Lam Research (-8.8%), and Applied Materials (-6.6%). The software industry also faced challenges as investors reevaluated competition and pricing factors associated with the rapid growth of artificial intelligence. In contrast, defensive and value-oriented sectors fared better. The healthcare sector attracted interest following an 8.2% rise in Amgen's stock, driven by stronger-than-expected earnings, which helped the Dow Jones Industrial Average gain 0.6%. However, weaker macroeconomic indicators offered little relief. The ADP employment report revealed that private payroll growth had slowed significantly to just 22,000 in January, highlighting diminishing labor demand amid a continued shift away from high-growth technology stocks.