US stocks were little changed on Wednesday as investors continued to rotate out of technology shares and assessed fresh signs of slowing momentum in the labor market.
The S&P 500 edged up 0.1% in midday trading. The Dow Jones Industrial Average added 173 points, or about 0.4%, while the Nasdaq Composite slipped 0.2%, reflecting ongoing weakness in growth-oriented and technology stocks.
Tech sector remains under pressure
Technology shares extended recent losses, led by a sharp decline in Advanced Micro Devices, whose stock fell about 9% after its first-quarter forecast fell short of some analysts’ expectations.
The outlook added to broader concerns about slowing demand and margins in parts of the semiconductor industry.
Other chipmakers also traded lower, including Broadcom and Micron Technology, which both declined during the session.
Software stocks remained under pressure as well, with Salesforce, Oracle and CrowdStrike extending losses from the previous day.
A sharp sell-off in global software stocks intensified on Wednesday for a second straight session, as investors weighed concerns that artificial intelligence could undermine, rather than strengthen, the business models of technology and data-focused companies.
The unease first surfaced on Tuesday following the launch of new automation tools by AI startup Anthropic.
The release underscored the speed at which artificial intelligence is expanding into areas traditionally dominated by software firms and professional services providers, prompting a reassessment of longer-term growth prospects.
Investors are now turning their attention to corporate earnings for further direction.
Alphabet is scheduled to report results after the close on Wednesday, while fellow “Magnificent Seven” member Amazon is due to report on Thursday.
ADP data highlights weak hiring momentum
Adding to the cautious tone, ADP released its monthly report on private-sector employment on Wednesday, showing that employers added just 22,000 jobs in January.
That figure was well below the 45,000 increase forecast by economists surveyed by Dow Jones and lower than December’s downwardly revised gain of 37,000.
The report suggested that US hiring remains sluggish at the start of 2026.
Without gains in education and health services, overall job growth would have been negative.
The ADP release typically precedes the monthly nonfarm payrolls report from the Bureau of Labor Statistics, but that report will not be published this week due to the recent partial government shutdown.
The shutdown, which began on Saturday, ended on Tuesday after President Donald Trump signed a funding bill into law.
Economists said the data points to a “low-hire, low-fire” environment, in which companies are reluctant to expand payrolls but also hesitant to lay off workers, reflecting uncertainty about the economic outlook.
Job growth concentrated in services
The ADP report showed that employment gains were heavily concentrated in a limited number of sectors.
Education and health services added 74,000 jobs, accounting for the bulk of overall growth.
Construction added 9,000 positions, while financial activities, leisure and hospitality, and trade, transportation and utilities recorded modest increases.
By contrast, professional and business services shed 57,000 jobs, manufacturing declined by 8,000, and other services lost 13,000 positions.
Nearly all net job creation came from service-related industries, underscoring ongoing weakness in more cyclical parts of the economy.
From a company-size perspective, mid-sized firms with 50 to 499 employees generated all net job gains. Small businesses showed no net change, while large employers cut 18,000 positions.
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