The US stock market closed mixed on Wednesday as losses in major technology companies outweighed gains across much of Wall Street. While most stocks finished higher, declines in several large chipmakers pushed the broader market lower.
The S&P 500 fell 0.2 percent, marking its eighth decline in the past 11 trading sessions. The Dow Jones Industrial Average slipped by 13 points, or less than 0.1 percent, while the Nasdaq Composite dropped 0.7 percent.
Despite the overall decline, market performance was stronger beneath the surface. Nearly three out of every five companies in the S&P 500 ended the day with gains. The index also recovered after falling as much as 0.7 percent earlier in the trading session.
One of the day’s strongest performers was General Mills, whose shares jumped 8.5 percent. The company reported quarterly earnings that exceeded market expectations and announced plans to reduce operating costs by $3 billion over the next four years. Investors responded positively to the stronger financial results and the long-term savings strategy.
Economic data released during the day also influenced market sentiment. A report from the Institute for Supply Management showed that US manufacturing expanded during the previous month but at a slower pace than economists had expected. The survey also indicated that price increases continued to slow.
The report eased some investor concerns about inflation. Slower price growth may reduce pressure on the Federal Reserve to raise interest rates several more times this year.
Following the report, yields on US government bonds moved lower. The yield on the 10-year US Treasury note fell to 4.47 percent after briefly approaching 4.50 percent earlier in the day.
Lower Treasury yields often provide support for financial markets because borrowing costs become less expensive for businesses and consumers. They can also improve investor demand for stocks by reducing competition from fixed-income investments.
Technology shares, however, remained under pressure. Several leading semiconductor companies that had benefited from strong enthusiasm surrounding artificial intelligence recorded sharp losses.
Micron Technology fell 10.6 percent, making it one of the biggest decliners in the market. Advanced Micro Devices lost 6.9 percent, while Nvidia declined 1.3 percent.
Analysts said AI-related stocks have become more volatile in recent weeks as investors reassess company valuations following significant gains over the past year. Because these companies represent a large share of the major stock indexes, their movements have a strong effect on overall market performance.
Retail and consumer companies produced stronger results. Kroger reversed early losses and closed 1.3 percent higher after announcing an agreement to acquire Giant Eagle for $1.25 billion in cash while assuming approximately $400 million in liabilities. The acquisition is expected to expand Kroger’s presence across several US states.
Nike also recovered from an early decline and finished 4.9 percent higher after reporting quarterly earnings that exceeded analyst forecasts. Company executives said the business continues to face challenges but remains focused on its long-term turnaround strategy.
Precious metals also experienced price swings. Gold briefly dropped below $3,980 per ounce before rebounding later in the session. Lower Treasury yields encouraged renewed buying, helping gold settle 1.1 percent higher at $4,082.40 per ounce.
Oil prices moved lower as investors continued monitoring developments involving the United States and Iran. Hopes that tensions could ease and shipping through the Strait of Hormuz could remain stable helped reduce concerns about global oil supplies. Brent crude fell 1.9 percent to $71.57 per barrel.
International markets showed mixed performance. South Korea’s KOSPI dropped 2 percent as investors sold semiconductor shares following recent strong gains. Even after the decline, the index remains significantly higher for the year.
Meanwhile, Japan’s Nikkei 225 rose 0.6 percent after the Japanese yen weakened to its lowest level against the US dollar in four decades, providing support for the country’s export-oriented companies.
Overall, Wednesday’s trading reflected a market balancing encouraging economic data and strong corporate earnings against continued weakness in high-value technology stocks. Investors will continue watching inflation reports, Federal Reserve policy signals, and company earnings for further direction in the coming weeks.
