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Tech Selloff Deepens After AMD Outlook as Dow Gains on Defensive Rotation

A weak ADP private‑payrolls reading reinforced caution over AI spending, steering money into defensive sectors.

Overview

  • Wall Street closed mixed on Wednesday, with the Dow up 0.53%, the S&P 500 down 0.51% and the Nasdaq off 1.51% as investors rotated out of high‑valuation tech.
  • AMD tumbled about 17% after issuing softer‑than‑expected guidance, pressuring chip peers, while Super Micro Computer rallied on stronger results and Eli Lilly jumped more than 10% on earnings and obesity‑drug demand.
  • Eight of 11 S&P 500 sectors rose, led by energy and materials, as technology lagged; concern over the near‑term profitability of heavy AI investment persisted.
  • ADP reported U.S. private payroll growth of 22,000 in January, well below forecasts, adding to risk aversion ahead of further labor data; Alphabet shares rose roughly 3% after hours on its quarterly update.
  • Argentine assets stayed volatile with ADRs broadly lower and the country‑risk gauge near or above 500 basis points, while Mexico’s IPC had rebounded about 3.16% a day earlier, underscoring regional divergence.