New york: US stocks ended mostly lower Wednesday as a decline in tech shares continued for a second day and the private sector posted weaker-than-expected employment data for January. The Dow Jones Industrial Average rose 0.53%, or 260.31 points, to close at 49,501.30. Conversely, the Nasdaq declined 1.51%, or 350.61 points, to 22,904.58, while the S and P 500 fell 0.51%, or 35.09 points, to 6,882.72. The Volatility Index (VIX), known as the "fear index," rose 3.56% to 18.64 points.
According to Anadolu Agency, concerns increased in the tech sector following Anthropic's announcement of a new AI tool capable of handling legal work, financial analysis, and sales tasks. This development has put pressure on software companies' shares, with Oracle and CrowdStrike falling by 5.1% and 1.5%, respectively. AMD's shares also saw a significant decline of 17.3% after the company's first-quarter projection failed to meet analysts' expectations, impacting the broader market.
Lisa Su, CEO of AMD, defended the company's figures in an interview with CNBC, highlighting a recent rise in demand despite the disappointing forecast. Other chip industry firms like Micron Technology and Broadcom also faced declines, with Micron falling 9.5% and Broadcom sliding 3.8%. Palantir Technologies, which had earlier seen its shares rise nearly 7% after exceeding earnings expectations, experienced an 11.6% drop on Wednesday.
In contrast, the pharmaceutical sector witnessed a positive outcome, with Eli Lilly's shares rising 10.4% after its fourth-quarter earnings and profits for the previous year surpassed market forecasts and its own expectations for 2026. On the employment front, ADP's private nonfarm payrolls increased by 22,000 in January, significantly below market expectations of 46,000, marking a continued slowdown in job growth.
Additionally, shares of American rare earth firms fell sharply following the US Trade Representative's announcement of plans to establish price floors with allies. USA Rare Earth and MP Materials saw declines of 9% and 6%, respectively. Meanwhile, President Donald Trump expressed confidence that interest rates would soon be lowered, stating to NBC News that he did not believe Kevin Warsh would have been his choice to lead the Federal Reserve if the intent was to raise rates.