Two of the three main U.S. equity indexes opened higher on Wednesday before rotation out of tech-related names resulted in a broader downturn. Skepticism about hyperscaler spending was reflected in the Dow Jones Industrial Average and the S&P 500 even before they joined the Nasdaq Composite in the red before noon as selling pressure took down more sectors and stocks.
Nvidia (NVDA, -3.8%), the leader of the AI revolution, gapped down early and was joined by all of its Magnificent 7 peers in posting losses as investors, traders and speculators continue to scrutinize capex plans and future profitability. Microsoft (MSFT, -0.06%) rolled over late and gave up a modest gain.
