Particle.news
Download on the App Store

Nasdaq Sinks as Dow Climbs on Rotation From Chips to Defensives

Weak guidance from AMD refocused investors on AI spending risks, prompting a shift into defensive sectors.

Overview

  • Wall Street closed mixed, with the Dow up 0.53% to 49,501, the S&P 500 down 0.51% to 6,883, and the Nasdaq off 1.51% to 22,905.
  • U.S. private payrolls rose by just 22,000 in January, undershooting forecasts and reinforcing a cautious tone ahead of heavyweight tech results.
  • AMD plunged 17.3% after projecting lower revenue, pressuring chipmakers, while Super Micro Computer jumped 13.8% and Eli Lilly surged 10.3% on strong obesity-drug demand; energy and materials advanced as technology logged the day’s steepest sector loss.
  • Alphabet shares gained about 3% after the close as the company reported a 30% year‑over‑year increase in fourth‑quarter profit and a 16% rise in operating income.
  • Regional markets diverged, with Mexico’s IPC up 3.16% on Tuesday even as Argentine assets stayed under stress, including ADR drops that deepened into Wednesday and a sovereign risk gauge hovering near or above 500 basis points, compounded by legal setbacks for Bioceres.