FX.co ★ Tech Shares Weigh on Wall Street

On Wednesday, U.S. stock markets exhibited a degree of caution. The S&P 500 dipped slightly by 0.1%, while the Nasdaq experienced a more notable decline of 0.5%. The Dow Jones remained largely unchanged. This market sentiment was influenced by downturns in significant technology stocks and renewed apprehensions regarding potentially inflated valuations in the AI sector. Microsoft saw a 2.5% decrease amid reports of reduced AI-related sales targets. Other tech giants, including Nvidia (-0.9%), Broadcom (-1.8%), and Amazon (-1.3%), also saw declines, with Netflix leading losses by shedding over 4%. Macy’s shares fell 1.7% as its latest financial results did not meet investor expectations. Conversely, Oracle gained 0.6% following a favorable overweight rating from Wells Fargo. Marvell Technology surged over 8% after releasing optimistic projections for data-center growth, and American Eagle Outfitters soared more than 13% after raising its full-year forecast. In economic news, weaker-than-expected ADP data fueled speculation of a 25 basis points rate cut by the Federal Reserve next week. The private sector in the U.S. unexpectedly lost 32,000 jobs in November, marking the largest decline since March 2023.