Traders work on the floor of the New York Stock Exchange in New York City.
Brendan McDiarmid | Reuters
Stocks fell on Wednesday as investors again moved away from major technology stocks.
of S&P500 While the stock traded 0.7% lower, Nasdaq Composite It fell 1.1%. of Dow Jones Industrial Average It fell 100 points, or 0.2%.
Losses in notable artificial intelligence stocks brought the entire market to a standstill. Top AI players oracle and chip manufacturers broadcom The two stocks that led the recent turnover in tech stocks each fell 5%. Fellow AI gurus Nvidia It also fell by more than 3%.
That adds to the huge losses Oracle and Broadcom are seeing this month, and investors are moving to other areas of the market, such as health care and financials. Month-to-date, Oracle and Broadcom are down 11% and 19%, respectively.
Wednesday’s move pushed the S&P 500 and Dow 30 into negative territory for the fourth day in a row. Both companies suffered losses on Tuesday after the U.S. Bureau of Labor Statistics released its November jobs report, which also includes October data. The findings put a lid on the health of the U.S. economy after federal data was backed up due to the U.S. government shutdown this fall.
The US economy shed 105,000 jobs in October and the unemployment rate rose to 4.6%, the highest level since September 2021, according to the report. But the economy added 64,000 jobs in November, beating the Dow Jones consensus estimate of 45,000.
“The economy has been slowing for a while now, and there was (was) a lot of hope in the market…but now that we have this data, all those hopes have basically been dashed,” Unlimited Funds CEO Bob Elliott said Tuesday on CNBC’s “Closing Bell Overtime.” “Now is probably not the time to buy a lot of stocks, but it might be time to add some bonds to your portfolio to finish out the year.”
On the economic front, Federal Reserve President Christopher Waller and New York Federal Reserve President John Williams are scheduled to speak on Wednesday morning.
Traders are also keeping an eye on Thursday’s release of the November Consumer Price Index.
