Market Turmoil: Tech Stocks Dive Amid AI Concerns, Dow Climbs Higher

The stock market experienced mixed movements on Wednesday. While the Dow rose, the S&P 500 and Nasdaq fell. Investor concerns over AI's impact on software models contributed to tech sector losses, with notable declines in AMD, Intel, and Nvidia. Meanwhile, small-cap stocks saw gains.

The stock market faced a rollercoaster on Wednesday with indices moving in different directions. The Dow Jones Industrial Average rose by 388.76 points, countering declines in the S&P 500 and the Nasdaq Composite, which saw losses of 0.24% and 1.09% respectively.

Emerging AI technologies have incited fears over traditional software business models, resulting in sharp declines in tech giants like Advanced Micro Devices, Intel, and Nvidia, causing the technology index of S&P 500 to fall 1.4%. Meanwhile, Salesforce and Atlassian managed to see gains amidst the software selloff.

Outside the realm of technology, small-cap stocks and materials sectors surged with the S&P 600 index nearing a two-week high. Defensive sectors also climbed, driven by increased gold and silver prices. President Trump's signing of a spending deal ended a partial government shutdown, but labor data release delays linger.

(With inputs from agencies.)