US stock indexes closed mixed on Wednesday as investors rotated out of technology and semiconductor stocks following a six-month rally, with the S&P 500 falling 0.2% and the Nasdaq 100 declining 1.5% while the Dow Jones Industrial Average ended flat. The rotation came after semiconductor stocks climbed over 80% during the first six months of 2026, prompting profit-taking that benefited blue-chip industrial stocks. The Philadelphia Semiconductor Index fell 6.3% after hitting its best quarter on record in the previous session, reflecting the sector-wide pullback in chip stocks.
S&P 500 Falls 0.2% as Nasdaq 100 Declines 1.5%
The S&P 500 fell 0.2% to close at 7,483.23, while the Nasdaq 100 eased 1.5% to 29,809.13 and the Dow Jones Industrial Average ended flat at 52,305.24. The Russell 2000, which tracks stocks with small market capitalizations, rose 0.1%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF fell 0.3% and Invesco QQQ Trust ended Wednesday around 1.6% lower, reversing all gains from the previous session, while the SPDR Dow Jones Industrial Average ETF Trust ended flat. The VanEck Semiconductor ETF lost 5.5%.
Fed Chair Warsh Downplays AI Job Loss Concerns
Federal Reserve Chair Kevin Warsh on Wednesday downplayed concerns that artificial intelligence will lead to job losses, saying he is not an AI doomer or pessimist. During an interview at the ECB Forum on Central Banking in Sintra, Portugal, Warsh said he believes the number of jobs created by AI will be greater and prosperity stronger.
Speaking about inflation, Warsh said prices are currently "too high," adding that central bank officials have become more open-minded about the impact of AI. "We're all in the price stability business, that might not be our only business, but if there was a common thing I heard over the last couple of days, it was open-mindedness on these questions of AI, open-mindedness on productivity. But we've all looked around, and we've seen that prices are too high," he said.
Oil prices returned to their pre-Iran war levels on Wednesday.
Walmart Shares Drop 5% on Sales Concerns
Walmart share price dropped 5% on Wednesday to its lowest level in nearly eight months after U.S.-based research firm Cleveland Research flagged slowing comparable sales, posing a potential risk to consensus estimates.
Meta Platforms Prepares AI Cloud Infrastructure Entry
Meta Platforms is preparing to enter the AI cloud infrastructure market, aiming to challenge the likes of Amazon and Microsoft by selling AI computing power and access to models, according to media reports.
General Motors Secures Chip Supply Deal with Micron
General Motors secured a long-term supply of chips for its vehicles under an expanded collaboration agreement with chipmaker Micron Technology.
Kroger Acquires Giant Eagle for $1.65 Billion
Kroger is acquiring the privately held smaller rival Giant Eagle in a $1.65 billion deal in a push to boost its presence in the Rust Belt region, according to a public statement on Wednesday.
Musk Rejects SpaceX AI Phone Reports
Tech billionaire Elon Musk on Wednesday publicly rejected a Wall Street Journal report, which stated that SpaceX recently demonstrated a prototype for a new handset-like artificial intelligence device to investors that was supposed to use Qualcomm's Snapdragon chip.
FAQ
What caused the S&P 500 and Nasdaq to fall on Wednesday?
Investors rotated out of technology and semiconductor stocks after a six-month rally in which semiconductor stocks climbed over 80% during the first six months of 2026, leading to profit-taking that benefited blue-chip industrial stocks.
What did Fed Chair Kevin Warsh say about AI and inflation on Wednesday?
Fed Chair Kevin Warsh downplayed concerns that artificial intelligence will lead to job losses, stating he believes the number of jobs created by AI will be greater and prosperity stronger. He also said prices are currently "too high" and noted that central bank officials have become more open-minded about the impact of AI.
Why did Walmart stock drop 5% on Wednesday?
Walmart share price dropped 5% to its lowest level in nearly eight months after U.S.-based research firm Cleveland Research flagged slowing comparable sales, posing a potential risk to consensus estimates.
