Wall Street loses ground as tech stocks sink again

NEW YORK — More drops for technology stocks weighed on Wall Street Wednesday.

The S&P 500 fell 0.5 per cent for its fifth modest loss in the last six days. The Dow Jones Industrial Average rose 260 points, or 0.5 per cent, and the Nasdaq composite sank 1.5 per cent.

More than twice as many stocks rose within the S&P 500 than fell, but sinking technology stocks weighed on the index for a second straight day.

Advanced Micro Devices dropped 17.3 per cent even though the chip company reported a stronger profit for the latest quarter than analysts expected. It also gave a forecast for revenue for the start of 2026 that topped analysts’ expectations, but that may not have been enough for investors after its stock had doubled over the last 12 months.

Tech stocks are broadly feeling pressure, even when they deliver stronger-than-expected profits. Big Tech stocks are facing criticism that their prices shot too high following their yearslong dominance of the market. Companies like software makers, meanwhile, are struggling with questions about whether they’ll lose in the future to competitors powered by artificial-intelligence technology.

Uber Technologies also dragged on the market after falling 5.1 per cent. The ride-hailing company reported results for the latest quarter that fell short of analysts’ expectations. It also gave a forecast for profit in the current quarter that was below analysts’ expectations, while naming a new chief financial officer.

Some tech stocks nevertheless climbed, including a 13.8 per cent rise for Super Micro Computer. The company, which sells AI servers and other equipment, delivered a stronger profit for the latest quarter than analysts expected.

Eli Lilly rallied 10.3 per cent after topping analysts’ expectations for profit in the latest quarter. It’s been riding big growth created by its Mounjaro and Zepbound products for diabetes and weight loss.

Match Group climbed 5.9 per cent after reporting better results than analysts expected and increasing its dividend. The company credited early signs of success from efforts to improve outcomes for users. It said a new facial verification feature for its Tinder service, for example, led to a sharp drop in interactions with “bad actors” where it’s been rolled out.

Walmart edged up by 0.2 per cent, a day after its total market value topped US$1 trillion for the first time. The retailer has broken into a small club dominated by Big Tech companies like Nvidia and Apple, which are each worth more than US$4 trillion.

All told, the S&P 500 fell 35.09 points to 6,882.72. The Dow Jones Industrial Average rose 260.31 to 49,501.30, and the Nasdaq composite fell 350.61 to 22,904.58.

Gold and silver prices rose after paring bigger, early gains. Gold added 0.3 per cent to settle at US$4,950.80 per ounce after earlier climbing back above the US$5,000 mark. It’s been swinging sharply after roughly doubling in price over 12 months. It neared US$5,600 last week and then fell below US$4,500 on Monday.

Silver’s price, which has been on an even wilder ride, rose 1.3 per cent.

Their prices had surged as investors looked for safer places to keep their money amid worries about everything from tariffs to a weaker U.S. dollar to heavy debt loads for governments worldwide. But critics said their prices rose too far, too fast and were due for a pullback.

In the bond market, Treasury yields held relatively steady following a couple mixed reports on the U.S. economy.

One from ADP Research suggested that U.S. employers outside of the government hired fewer workers last month than economists expected. A second from the Institute for Supply Management said that growth for health care, construction and other U.S. services businesses continued in January at the same pace that economists expected.

That second report, though, also indicated that prices paid by U.S. services businesses rose at a faster rate in January, which could be a discouraging signal for inflation.

The yield on the 10-year Treasury edged down to 4.27 per cent from 4.28 per cent late Tuesday.

In stock markets abroad, indexes were mixed across Europe and Asia.

Japan’s Nikkei 225 fell 0.8 per cent from its all-time high. Nintendo sank 11 per cent, even as the video game company reported strong profits. Investors and analysts are concerned about whether sales momentum can be maintained for the Switch 2 game console that was rolled out last year.

South Korea’s Kospi, meanwhile, climbed 1.6 per cent to another record.

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Stan Choe, The Associated Press. AP Business Writers Chan Ho-him and Matt Ott contributed