Technology stocks sold off Wednesday, Dow makes minor gain

Canada News.Net

a day ago

NEW YORK, New York - Profit-taking in the tech sector saw the Nasdaq Composite dip again Wednesday, however the broader market was steady with buyers and sellers ending the day on even ground.
"It's not a surprise to see some investors taking profits in tech stocks, which have had an incredibly strong run – with some up over 80 percent since the early April lows. Market volume in general is typically quite sparse in late August leading to wider swings than fundamentals would warrant," Carol Schleif, chief market strategist at BMO Private Wealth told CNBC Wednesday.
The tech-heavy NASDAQ Composite (^IXIC) bore the brunt of the selling pressure, falling 142.09 points, or 0.67 percent, to close at 21,172.86. The decline was fueled by profit-taking in several mega-cap technology stocks that have led the market's recent rally.
In contrast, the Dow Jones Industrial Average (^DJI) demonstrated resilience, adding 16.04 points, a gain of 0.04 percent, to finish at 44,938.31. The blue-chip index's advance was supported by strength in industrial and financial sectors, highlighting a rotation out of growth and into value-oriented names.
The broad S&P 500 (^GSPC), which tracks the health of the largest U.S. companies, slipped 15.59 points, or 0.24 percent, ending the session at 6,395.78. The index was caught between the Dow's strength and the Nasdaq's weakness.
The day's divergent performance suggests investors are cautiously reassessing positions after a powerful first-half rally. With major indexes near record levels, traders are becoming more selective, locking in profits from high-flying tech stocks and seeking opportunities in other areas of the market.
Analysts point to upcoming economic data and corporate earnings reports as the next major catalysts that will determine if the market's record-breaking momentum can continue or if a broader pause is underway.
U.S. Dollar Shows Mixed Performance as Kiwi Dollar Plummets Over 1 Percent
The U.S. dollar traded in a mixed fashion against its major rivals on Wednesday, strengthening sharply against commodity-linked currencies while showing weakness against the Euro and the Japanese Yen.
The Euro (EUR/USD) managed a modest gain, climbing 0.07 percent to trade at 1.1654. The move provided a slight respite for the common currency, which has been under pressure recently.
In contrast, the British Pound (GBP/USD) faced selling pressure, falling 0.27 percent to 1.3453. The decline outpaced its European peer as traders assessed the UK's economic outlook.
The day's most dramatic move was seen in the New Zealand Dollar (NZD/USD), which tumbled a striking 1.12 percent to 0.5826. The "Kiwi" was the session's worst performer, likely pressured by shifting risk sentiment and concerns over the global economic slowdown impacting commodity exports. The Australian Dollar (AUD/USD) also weakened, falling 0.29 percent to 0.6434.
The U.S. Dollar (USD) saw a slight gain against the Canadian Dollar (USDCAD), edging up 0.02 percent to 1.3870, as oil prices—a key driver for the loonie—remained volatile.
However, the Greenback lost significant ground against traditional safe-haven currencies. The U.S. Dollar (USD/JPY) fell 0.23 percent against the Japanese Yen to 147.31. It also dropped sharply against the Swiss Franc (USD/CHF), declining 0.44 percent to 0.8039.
The mixed price action suggests a market in flux, with traders balancing the U.S. Federal Reserve's interest rate path against growing concerns about a global economic downturn. The pronounced weakness in the commodity-linked Australian and New Zealand Dollars points to a broader unease about future demand.
Global equity markets delivered a mixed performance on Wednesday, with European and Asian indices painting a fractured picture driven by regional concerns and sector-specific sell-offs.
Canada's S&P/TSX Composite index (^GSPTSE) posted a modest gain, rising 54.88 points, or 0.20 percent, to close at 27,878.76.
The UK's FTSE 100 was a clear standout, posting a robust gain of 98.92 points to close at 9,288.14, a rise of 1.08 percent. The rally was largely attributed to a weakening pound and strength in heavyweight mining and energy stocks.
However, the positive sentiment did not extend to the continent. Germany's DAX led the losses in Europe, falling 146.10 points, or 0.60 percent, to finish at 24,276.97.
France's CAC 40 ended virtually flat at 7,973.03, down a marginal 0.08 percent.
The broader EURO STOXX 50 index also dipped, losing 0.20 percent to settle at 5,472.32. Belgium's BEL 20 was a brighter spot, climbing 0.48 percent to 4,818.89.
In Asia, trading was a tale of two halves. Japan's Nikkei 225 was a major laggard, tumbling 657.74 points, or 1.51 percent, to close at 42,888.55. The sell-off was driven by profit-taking in technology shares following recent rallies. Similarly, Taiwan's TWSE Index suffered a significant decline, plummeting 2.99 percent to 23,625.44.
In contrast, mainland China's Shanghai Composite showed strength, advancing 1.04 percent to 3,766.21. Australia's S&P/ASX 200 rose 0.25 percent to a record close of 8,918.00, while New Zealand's S&P/NZX 50 was the day's top performer, jumping 1.10 percent to 13,071.30.
Other key indices in the Asin region were mixed. South Korea's KOSPI fell 0.68 percent, while India's S&P BSE SENSEX edged up 0.26 percent to another record high. Singapore's STI Index and Hong Kong's Hang Seng both eked out modest gains of 0.08 percent and 0.17 percent, respectively.
In the Midle East, Israel's TA-125 declined 0.87 percent, and Egypt's EGX 30 dropped 1.02 percent.
Investors are now turning their attention to key economic data and central bank commentary later in the week for further direction on interest rates and the global economic outlook.