Wall Street closed lower on Wednesday, with all three major indexes retreating amid growing caution ahead of key economic data. The Dow Jones Industrial Average led the decline, dropping 0.80%, while the Nasdaq Composite slipped 0.1% and the S&P 500 fell 0.2%, reflecting a cautious tone across the market.
Technology Sector Shows Sharp Divergence
Tech stocks were in the spotlight, with notable splits in performance. Intel surged more than 7%, hitting a nearly two-year high, fueled by strong earnings expectations and rising demand for AI chips. AMD followed closely with a gain of over 6%, highlighting sustained investor interest in the semiconductor space.
In contrast, megacap tech names faced selling pressure. Meta, Amazon, and Microsoft each declined more than 1%, weighing on the broader tech index. Analysts suggest these stocks may be undergoing profit-taking after extended rallies.
- Dow down 0.80%
- Nasdaq down 0.1%
- S&P 500 down 0.2%
Outlook Turns Cautious
Market participants are closely watching upcoming inflation reports and Federal Reserve signals. While AI-driven investments continue to boost select tech firms, elevated interest rates remain a headwind for valuations. Near-term volatility is expected, with investors advised to maintain balanced and agile portfolios.