The S&P 500 and Nasdaq 100 indices closed lower on Thursday after suffering heavy selling pressure, mainly involving artificial intelligence (AI) and semiconductor stocks for the second consecutive day.
In terms of major index performance, the S&P 500 and Nasdaq Composite fell 0.51% and 1.51% respectively due to losses in software stocks amid concerns that AI technology could disrupt the sector's business models.
However, the Dow Jones rose 0.53% as investors shifted away from the technology sector to higher-value sectors.
This situation occurred as investors were considering the latest earnings reports of major companies.
At the same time, shares of Google parent company Alphabet fell more than 1% after the company signaled a sharp increase in AI capital spending this year.
Other AI giants also suffered declines, including AI leader Nvidia which fell 1.9%, while Broadcom plunged 6.5%.
In other news, the ADP Private Sector Employment Report showed that private sector employment growth plunged to 22,000 in January.
The figure reflects weaker macro signals and indicates a slowing trend in labor market demand.
