US sharemarkets finished lower on Wednesday as renewed selling in semiconductor stocks outweighed gains elsewhere, while investors continued rotating into industrial and defensive names.
The Dow Jones Industrial Average slipped 13.96 points, or 0.03%, to 52,305.24 after reaching a record intraday high of 52,742.66. The S&P 500 fell 0.22% to 7,483.23, while the Nasdaq Composite declined 0.66% to 26,040.03.
Technology stocks remained under pressure as investors took profits following the sector’s strong first-half performance. Micron Technology dropped more than 10%, while Sandisk also fell over 10%. Nvidia eased about 1% and Broadcom lost 2%.
The weakness was partly offset by gains elsewhere in the technology sector. Meta Platforms jumped nearly 9% after announcing plans to launch a cloud infrastructure business, while Microsoft and Apple gained 3% and almost 2%, respectively.
The latest moves extend a rotation that has seen investors shift from high-growth semiconductor stocks into more cyclical and value-focused sectors after a strong start to the year.
Australian Market Outlook
Australian shares are expected to open lower after weakness across US semiconductor stocks weighed on broader market sentiment.
S&P/ASX 200 futures are down 23 points, or 0.3%, to 8,687.
Locally, May trade data will be released at 11.30am AEST and is expected to provide an update on Australia’s export performance.
Global attention will remain on the US June employment report, with economists expecting around 115,000 to 130,000 jobs were added during the month while the unemployment rate is forecast to remain at 4.3%. The release, brought forward ahead of the US Independence Day holiday, is likely to be the key driver for markets heading into the weekend.
