U.S. equities trimmed sharp losses in the final hours of trading Wednesday, recovering some ground after a turbulent session. Despite the late bounce, major indexes ended in negative territory, reflecting sustained caution among market participants.
Market Performance: Tech Drags on Broader Indices
The S&P 500 closed 1% lower, having at one point dropped 1.5%. The tech-heavy Nasdaq Composite fared worse, sliding 1.3%, continuing its recent pullback. The Dow Jones Industrial Average showed relative resilience, falling less than 0.8%.
Key Market Drivers
- Stronger-than-expected economic data reignited concerns over delayed Fed rate cuts;
- Major tech names declined broadly, with profit-taking seen in AI-related plays;
- Rising Treasury yields added pressure on high-growth, valuation-sensitive stocks.
Analysts note that while equities are showing pockets of resilience, near-term volatility is likely to persist. Investors are now turning their attention to upcoming inflation reports for clearer signals on the rate path.