US equity markets exhibited mixed performance during early trading on Wednesday, with technology stocks continuing to exert downward pressure on overall sentiment. Meanwhile, gold prices staged a notable rebound, climbing back above the psychologically significant $5,000-per-ounce threshold as investors increasingly sought safe-haven assets amid ongoing market uncertainties.
US Market Movements and Sectoral Pressures
The S&P 500 index slipped 0.1% in early trade, marking its fourth modest decline in the last five trading sessions. In contrast, the Dow Jones Industrial Average demonstrated resilience, rising 258 points. The technology-heavy Nasdaq composite fell 0.6%, reflecting the continued drag from technology stocks for a second consecutive session.
Technology shares remained under pressure, though some individual companies showed strength. Match Group gained ground after reporting better-than-expected financial results and announcing an increase in its dividend payout. Treasury yields remained largely steady in the bond market, indicating cautious investor positioning.
Premarket Trading and Individual Stock Performance
Futures trading ahead of the official market opening showed mild gains for broader indices. S&P 500 and Dow futures both advanced 0.2%, while Nasdaq futures dipped 0.2%, highlighting the ongoing divergence between technology and broader market segments.
Among stocks that had pressured markets earlier in the week, Nvidia and Microsoft each registered gains of less than 1% in premarket trading. Software companies, which had faced substantial selling pressure amid concerns about artificial intelligence-led disruption, showed tentative signs of stabilization. Adobe and Salesforce were down less than 1% in premarket activity after both had fallen approximately 7% during the previous trading session.
AI Disruption Concerns and Market Rotation
Investor concerns regarding AI disruption intensified following Anthropic's announcement of new features for its Cowork assistant, specifically designed to automate legal research and drafting processes. This development weighed on companies offering similar services, including LegalZoom and London Stock Exchange.
Market participants have been actively rotating exposure in and out of technology stocks amid growing concerns about elevated valuations, substantial spending on artificial intelligence initiatives, and uncertainty surrounding returns on these significant investments.
Corporate Earnings and Economic Indicators
Uber shares declined nearly 5% after the company missed profit expectations and issued weaker-than-anticipated guidance for the first quarter. Conversely, Walmart continued its upward trajectory after becoming the first traditional retailer to surpass the $1 trillion market valuation milestone earlier in the week.
With the delayed release of the US jobs report due to the recently concluded partial government shutdown, investors are expected to focus more heavily on corporate earnings to assess underlying economic momentum. Alphabet is scheduled to report quarterly results after market hours on Wednesday, followed by Amazon on Thursday.
Global Market Performance and Regional Variations
Global financial markets displayed mixed trends across different regions. In European trading, France's CAC 40 index rose 0.9% by midday, while Germany's DAX fell 0.4%. Britain's FTSE 100 advanced 1.2%, demonstrating regional divergence.
Asian markets largely closed higher, though with notable exceptions. Japan's Nikkei 225 declined 0.8% to 54,293.36, retreating from recent record highs. Shares of Tokyo Electron and Advantest each fell 2.1%, while SoftBank Group dropped 2.2%. Nintendo shares declined 11% despite reporting strong earnings, as investors questioned the sustainability of demand for the anticipated Switch 2 console.
South Korea's Kospi rose 1.6% to 5,371.10, with Samsung Electronics gaining nearly 1% while SK Hynix slipped 0.8%. Hong Kong's Hang Seng edged up marginally, while China's Shanghai Composite rose 0.9%. Australia's S&P/ASX 200 gained 0.8%, and Taiwan's Taiex added 0.3%. India's Sensex rose over 0.2%, participating in the broader Asian upward trend.
Commodities and Currency Markets
Precious metals experienced strong buying interest during the trading session. Gold prices rose 2.8% to $5,075 per ounce, while silver jumped nearly 8% to approach $90 per ounce following recent volatility in precious metals markets.
"After plunging from record highs amid elevated volatility, precious metals attracted renewed buying interest," ING Bank analysts Warren Patterson and Ewa Manthey noted in a market commentary. "Safe haven demand is among factors that will remain supportive of gold prices over the medium term," they added, highlighting the defensive positioning among certain investor segments.
In energy markets, US benchmark crude oil gained 24 cents to $63.45 per barrel, while Brent crude rose 17 cents to $67.50 per barrel. Currency markets saw the US dollar strengthen to 156.64 Japanese yen from 155.77 yen, while the euro edged higher to $1.1823 against the dollar.
