Major United States benchmark indices closed lower on Tuesday (Wednesday AEDT) as investors rotated out of technology shares.
The Dow Jones Industrial Average fell 166.7 points or 0.3% to 49,241.0, after earlier rising as much as 0.5% to touch an intraday record of 49,653.13. The S&P 500 slipped 58.6 points or 0.8% to 6,917.8, while the Nasdaq Composite dropped 336.9 points or 1.4% to 23,255.2, pushing the technology-heavy index into negative territory for the year.
Selling was concentrated across large-cap technology names. Microsoft and Meta Platforms declined 2.9% and 2.1%, respectively, while Tesla finished flat and Apple eased 0.2%.
Nvidia also fell 2.8%, extending its losses for the year, as weakness in artificial intelligence-linked shares continued.
Palantir was an exception, rising 6.9% after the defence technology company reported strong fourth-quarter financial results and issued upbeat guidance.
Pressure extended beyond equities. Bitcoin fell 2.8%, touching its lowest level since November 2024, after dropping below the US$80,000 mark over the weekend.
There were, however, pockets of strength. Walmart gained 2.9% and surpassed a $1 trillion market capitalisation on Tuesday, following a sustained share price rally driven by growth in its digital businesses and new customer gains.
PepsiCo rose 4.9% after reporting strong earnings supported by improving organic sales across its operations.
Bank shares, including JPMorgan and Citigroup, traded higher 2.2% and 1.3% higher, respectively, as investors rotated towards more economically sensitive sectors.
Investors are assessing results from more than 100 S&P 500 companies reporting this week. Alphabet will release earnings results after Wednesday's close (Thursday AEDT), while Amazon is due to release earnings later in the week.
On the bond markets, Treasury yields edged lower, with the 10-year yield down 0.3% at 4.267% and the 2-year yield down 0.1% at 3.57%.
