US Stocks Lower as Tech Sector Drags

US Stocks Lower as Tech Sector Drags

US stocks were lower on Wednesday, with the S&P 500 down 0.6%, the Nasdaq falling 0.8%, and the Dow Jones losing 280 points, as a renewed tech selloff weighed on sentiment amid lingering concerns over elevated AI-related valuations.

Nvidia (-1.4%), Broadcom (-3.9%), and Micron Technology (-3.5%) were among the steepest decliners, while Oracle slipped 2.4% ahead of its earnings release after the closing bell.

The industrial sector also weakened, although energy stocks outperformed as oil prices rose amid continued strikes between Iran and the US. Meanwhile, the latest CPI report showed US annual inflation accelerating to 4.2% in May, in line with expectations, while core inflation rose less than anticipated on a monthly basis, increasing 0.2%.

The data offered some reassurance that the energy-driven shock has not yet meaningfully spilled over into broader price pressures.

Still, markets continue to fully price in a 25-basis-point rate hike in December.

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