The Nasdaq composite fell sharply in midday trading Wednesday as chip stocks came under fresh selling pressure and concerns lingered about potential AI disruption to software and data companies.
Nasdaq lost 2% as selling intensified through the morning. The tech-heavy index is on course for its fourth down session in five trading days. Meanwhile disappointing results from AMD, the chip maker, put its stock on course for the biggest pullback since 2017. It was recently down 17%, with Nvidia, Broadcom and Intel all down 4% or more.
The Dow industrials held up better, trading near flat as the blue-chip average benefited from gains in Amgen, McDonald's and 3M. Some U.S. software companies, such as Adobe, Intuit and Workday, retraced some of their sharp Monday declines. Global peers fell, from Japan's Fujitsu and India's Infosys to LSEG in Europe.
Investors have long harbored concerns that artificial intelligence will undercut the lucrative business models of companies specializing in code, databases and IT services. But recent advancements, such as new tools from Anthropic, have sharpened those worries. Nvidia's Jensen Huang, however, called the idea that AI would replace software "the most illogical thing in the world."
Earnings drove other big moves. The New York Times shares sank following results. Eli Lilly surged, underscoring how it has outmaneuvered weight-loss rival Novo Nordisk.
Metals prices remained volatile after last week's abrupt crash. Gold futures spiked above $5,000 a troy ounce, before handing back gains.
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(END) Dow Jones Newswires
February 04, 2026 14:08 ET (19:08 GMT)
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