Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 21, 2026.
Brendan McDermid | Reuters
The S&P 500 fell on Wednesday as the sell-off in technology stocks intensified, with losses in Advanced Micro Devices hindering the trade.
The broad market index slid 0.51% and closed at 6,882.72, while the Dow Jones Industrial Average added 260.31 points, or 0.53%, and settled at 49,501.30. The Nasdaq Composite dropped 1.51% to end at 22,904.58. Adding to the risk-off sentiment, bitcoin fell more than 3% after earlier breaking below the $73,000 level.
Shares of AMD weighed on the broader market, pulling back 17% after its first-quarter forecast underwhelmed some analysts. Defending the results, CEO Lisa Su told CNBC Wednesday that the company has seen an increase in demand in recent months, saying, "AI is accelerating at a pace that I would not have imagined."
Still, other names in the chips space such as Broadcom and Micron Technology suffered losses as well. The former was down 3.8%, while the latter fell 9.5%.
Some software stocks also continued to face pressure, including Oracle and CrowdStrikewhich extended their decline from the prior trading day. Oracle shed 5%, while CrowdStrike lost more than 1%. While the group has been a source of weakness recently, certain names like Microsoft found stability Wednesday. That stock was up nearly 1%.
"Toward the end of last year, you began to see the market differentiate between what the market perceived to be the winners and losers in the [artificial intelligence] space," Scott Welch, chief investment officer at Certuity. "I think you're seeing a continuation of that now."
For the Dow, Amgen was among the names fueling outperformance. The biotechnology stock was higher by 8% after the company reported better-than-expected earnings and revenue for the fourth quarter. Honeywell also offered a boost to the index, rising almost 2% as investors moved from tech into more value-oriented names.
"It's just a natural rotation," Welch said. "It's been such a large cap growth-dominated space for so long — value was just punished, small cap was punished and non-U.S. markets were just kind of ignored when, in fact, they basically doubled the results of the domestic market last year."
"All of this has been sort of coming for a while, and I think you're just beginning to see that play out," he added.
Meanwhile, ADP on Wednesday released its monthly look at private payroll growth for January, which showed an increase of just 22,000 on the month. That's below the gain of 45,000 jobs that economists polled by Dow Jones had forecast.
The release generally precedes the Bureau of Labor Statistics report on nonfarm payrolls, but that won't be out this week due to the partial government shutdown. The shutdown, which began Saturday, officially ended Tuesday, when President Donald Trump signed a funding bill into law.
On Tuesday, the major averages sold off as investors gravitated out of riskier growth names and toward cyclical stocks like Walmart. Nvidia and Microsoft each lost almost 3% in the previous session. Big-name AI infrastructure names Broadcom, Oracle and Micron also closed in the red. The tech sector was the worst performer in the S&P 500, down more than 2%.
All eyes are now on Alphabet, as the company is slated to report earnings after the bell Wednesday. The quarterly results of fellow "Magnificent Seven" member Amazon are due Thursday.
S&P 500, Nasdaq close lower
The S&P 500 and Nasdaq Composite closed solidly in the red on Wednesday.
The broad market index dropped 0.51% to 6,882.72, while the tech-heavy Nasdaq declined 1.51% to 22,904.58.
The 30-stock Dow Jones Industrial Average outpaced the two indexes, rising 260.31 points, or 0.53%, to 49,501.30.
— Sean Conlon
Disney's new CEO pick D’Amaro is 'Best Succession Since HBO’s,' says Bank of America
Josh D'Amaro speaks onstage at "Creating Happiness: The Art & Science of Disney Parks Storytelling" during the 2023 SXSW Conference and Festivals at Austin Convention Center on March 10, 2023 in Austin, Texas.
Errich Petersen | Getty Images
Bank of America is confident in Disney's pick to replace Bob Iger as CEO, dubbing it the "Best Succession Since HBO's."
Disney on Tuesday said that Chairman of Disney Experiences Josh D'Amaro will succeed Iger, who helmed the company for nearly two decades, effective March 18.
The Wall Street bank reiterated an overweight rating and a price target of $150 on Disney, suggesting more than 40% upside from Tuesday's close. Disney rose 3% in afternoon trading Wednesday.
The decision ends "a lengthy process with the outcome a best-case scenario for investors," wrote analyst Steven Cahall, rejecting concerns that D'Amaro is not "a creative." If anything, Cahall argued D'Amaro "understands creative culture better than his predecessor."
DIS 1-day
— Itzel Franco
Retail traders buy PayPal as shares tumble
Retail investors rushed into PayPal shares as the stock cratered on Tuesday.
Mom-and-pop trader bought around $79.4 million of the financial technology stock on net, according to market research firm VandaTrack. That marked the largest net inflows into PayPal since early 2022 and a more than six-fold increase from the prior session, VandaTrack said.
PayPal shares tumbled more than 20% in Tuesday's session, marking its second-worst day on record. The California-based company on Tuesday announced a disappointing profit forecast for 2026 and the departure of CEO Alex Chriss.
PayPal, 5-day chart
Shares fell around 2% in afternoon trading Wednesday.
— Alex Harring
Citizens Bank upgrades Airbnb, sees 31% upside ahead
Citizens Bank analyst Matthew Condon upgraded shares of Airbnb to a market outperform rating from market perform on Wednesday, citing multiple upcoming catalysts that could drive upside to current expectations.
"These include the launch of hotels on the Airbnb platform—which we expect to improve conversion in supply-constrained urban markets—as well as the potential launch of advertising, which we view as a meaningful incremental EBITDA opportunity," he wrote. "When combined with recent operational enhancements — including the rollout of Reserve Now, Pay Later, deeper integration of AI into the product experience, and updated cancellation policies — we see several levers that could support upward revisions to estimates over time."
His newly established price target of $160 implies that shares could rise 31% from their Tuesday close.
Airbnb stock has slipped 4% over the past 12 months and 7% this year. Shares added 2% on Wednesday.
ABNB 1M chart
— Lisa Kailai Han
Rare earth stocks fall as U.S. explores price floors with allies
Shares of U.S. rare earth companies fell after the U.S. unveiled plans to set price floors with allied nations.
MP Materials and USA Rare Earth fell 6% and 9%, respectively.
The moves comes after the U.S. Trade Representative said it plans to cooperate with Mexico, the European Union and Japan on price floors for critical minerals.
— Spencer Kimball
Berkshire Hathaway's stock moves higher, turns positive for 2026.
Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
David A. Grogen | CNBC
As the broader market struggled on Wednesday, shares of Berkshire Hathaway moved more than 3% higher in midday trading. The stock is now up about 6% so far this week.
The latest move has Berkshire Hathaway in the green year to date, the first year of CEO Greg Abel's tenure. Abel took over the top spot from Warren Buffett on Jan. 1.
— Michelle Fox
Tech-Software fund on track for 7th straight day of losses
iShares Expanded Tech-Software Sector ETF (IGV) fell 3% on Wednesday, putting the fund on pace for its seventh day of losses in a row.
Several names in the fund notched new 52-week lows. Those include intapppingHeroServiceTitanAsanaHubSpotBrazeGuidewireStrategyAtlanticSalesforce and ServiceNow
IGV, 5-day
— Sean Conlon, Gina Francolla
ServiceNow and Salesforce give up earlier gains
Signage outside the ServiceNow headquarters in Santa Clara, California, US, on Thursday, Sept. 4, 2025.
David Paul Morris | Bloomberg | Getty Images
ServiceNow and Salesforce lost momentum in midday trading Wednesday after seeing a bit of a morning bounce.
ServiceNow was last down nearly 2%, while Salesforce was lower by more than 1%. At their highs, ServiceNow was up more than 1%, while Salesforce had risen almost 2%.
NOW vs. CRM, 1-day
— Sean Conlon, Christopher Hayes
January jobs report to be released February 11, BLS says
The January jobs report delayed by the brief government shutdown will be released next week, the Bureau of Labor Statistics said Wednesday.
The closely watched report now will come out Feb. 11, five days later than its original release date, according to a revised schedule.
In addition, the BLS will release the Job Openings and Labor Turnover Survey on Thursday, after it originally had been scheduled for Tuesday. Read more.
— Jeff Cox
Despite Chipotle’s post-earnings slide, analysts are still bullish
Chipotle Mexican Grill Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Dec. 31, 2025.
Michael Nagle | Bloomberg | Getty Images
Chipotle reported an earnings and revenue beat in its fourth-quarter report Tuesday, but another period of falling traffic and a projection for flat same-store sales growth in 2026 has weighed on the company's shares.
The fast-casual chain did recover from its initial drop but still fell about 1% in late morning trading, adding on to its more than 34% losses in the past year.
But the street still sees the path for a comeback story, with many firms reiterating buy ratings on the stock. "Our view is that CMG's value prop is intact and brand perception good, so evolution at the margin to rewards, menu, marketing can be effective," wrote Morgan Stanley analyst Brian Harbour in a note.
CMG 1-year chart
JPMorgan analyst John Ivankoe noted there are already signs of turnaround efforts working, pointing to the company's report of a strong start to January after its launch in December of a new high-protein menu, though weather impacted traffic in the second half of the month. Ivankoe, however, reiterated a neutral rating.
Deutsche Bank maintained its buy rating on Chipotle shares with a belief that its weak guidance for 2026 will make it easier for the company to surpass expectations. "We continue to believe CMG offers a favorable setup & catalyst path in 2026," wrote analyst Lauren Silberman, "and think the company took an appropriately conservative approach to its guide with room for beats on both SSS and margins, which should help improve credibility (and sentiment)."
— Davis Giangiulio
ISM services index beats forecast as prices rose and inventories and exports slide
Service-sector activity in the U.S. increased in January though exports and hiring slowed while prices rose, according to an Institute for Supply Management report Wednesday.
The ISM services index posted a reading of 53.8 to kick off the new year, the same as the revised December number and slightly better than the Dow Jones consensus of 53.5. The index measures the percentage of businesses reporting growth, so anything above 50 is positive.
Internally, the business activity index hit 57.4, 2.2 points above the prior reading. However, a number of other indexes slumped, including inventories (-9.1), new export orders (-9.2) and new orders (-3.4).
The employment index was still in expansion at 50.3, but down 1.4 points from December. Prices rose, with the index now at 66.6, a gain 1.5 points.
"There was more respondent commentary in January on tariff impacts and uncertainty, potentially the result of annual contract renewals and geopolitical tensions," said ISM Chair Steve Miller.
— Jeff Cox
Wall Street cautious on 'Trump homes'
A drone view of new residential home construction at Fox Point Farms, a development by Shea Homes, is shown in Encinitas, California, U.S., June 18, 2024.
Mike Blake | Reuters
Wall Street isn't jumping aboard a reported push by builders to develop so-called "Trump Homes."
Shares of homebuilders, such as Lennar and Taylor Morrison Homejumped Tuesday after a Bloomberg report on the plan, which said the homes would address the affordability crisis. Both names extended their gains in morning trading Wednesday, rising around 3% each.
Barclays said it's hard to see how the move would be positive for homebuilders, other than the optics of a political "win."
"As we have noted previously, we think any supply-driven solution would be detrimental for homebuilder margins given elevated inventory levels today in the markets where builders have lots, and the lack of supportive fundamental demand," analyst Rafe Jadrosich wrote in a note Tuesday.
However, it sees positive implications for supplies such as Builders FirstSourceLouisiana-Pacific and Owens Corning.
UBS believes the industry should proceed with caution.
"We have been of the view that 2026 will be a better year for housing … for a number of reasons, including that inventory has stabilized/been worked down across key markets," analyst John Lovallo,said in a note. "If this program does come to fruition, we believe it must be done thoughtfully as to not force supply into unreceptive markets."
Meanwhile, Piper Sandler believes the story will be forgotten in a matter of days or weeks.
"Calling them 'Trump Homes' makes for good copy, but we fail to see what's significant here," Andy Laperriere, head of U.S. policy, said in a note Wednesday. "The private sector could do something like this at any time, and there is a good reason why it hasn't at scale – because this is a fraught business model."
— Michelle Fox
S&P 500 opens little changed
The S&P 500 began Wednesday's session little changed.
The broad market index rose 0.1%, while Dow Jones Industrial Average advanced 173 points, or 0.4%. The Nasdaq Composite declined 0.2%.
— Sean Conlon
Super Micro, Silicon Laboratories, Eli Lilly among the names making premarket moves
Check out the companies making headlines before the bell:
- Super Micro Computer— Shares jumped 10% as strong demand for Super Micro's AI-optimized servers helped fiscal second-quarter results top expectations and prompted the company to raise its annual revenue forecast. Super Micro earned 69 cents per share on an adjusted basis, soundly outpacing the second-quarter consensus estimate of 49 cents per share, per LSEG. Revenue of $12.68 billion, topped the $10.23 billion estimate. The company anticipates fiscal 2026 revenue will be at least $40 billion, which compares with a $36.09 billion estimate.
- Silicon Laboratories — Shares surged 52% after The Financial Times reported Texas Instruments had agreed to purchase chip designer Silicon Laboratories for $7.5 billion amid ongoing consolidation in the semiconductor industry.
- Eli Lilly — The drugmaker's stock rose nearly 7% after it posted higher-than-expected results on its top and bottom lines for the fourth quarter. The company also issued full year guidance for non-GAAP earnings of between $33.50 and $35 per share excluding some items, topping analysts' consensus estimate of $33.04, per FactSet. It is also forecasting revenue of $80-$83 billion by the end of 2026 versus analysts' expectations of $77.64 billion.
Read more here.
— Liz Napolitano
Private payrolls increased by 22,000 in January, ADP reports
A 'now hiring' sign is displayed in a business's window in Manhattan on January 09, 2026, in New York City.
Spencer Platt | Getty Images
The U.S. labor market barely b udged in January, with hiring below even muted expectations, according a report Wednesday from payrolls processing firm ADP.
Private companies added just 22,000 positions for the month and the number would have been negative had it not been for a surge of 74,000 hires in the education and health services category. The total was less than the downwardly revised 37,000 increase in December and below the Dow Jones consensus forecast for 45,000.
The report starts 2026 off on basically the same note where 2025 ended: A lackluster job market in a low-hire, low-fire environment that likely will do little to quell fears from Federal Reserve policymakers that more support may be needed. Read more.
— Jeff Cox
How analysts are reacting to AMD’s earnings
Analysts across Wall Street remained largely neutral on Advanced Micro Devicesdespite its latest earnings beat, citing brewing concerns around the chipmaker's overall profitability.
In its fourth quarter, AMD reported earnings of $1.53 per share, exceeding the $1.32 analysts polled by LSEG had penciled in. The firm's $10.27 billion revenue also came in above the expected $9.67 billion. AMD also guided for first-quarter revenue of $9.8 billion, plus or minus $300 million. Again, this was above the $9.38 billion consensus estimate.
Still, shares of AMD plummeted 9% in Wednesday's premarket session as analysts expressed worries that the company does not have enough to show for its high spending, as its outsized operating expenditures, or opex, have continued to weigh down profitability.
JPMorgan analyst Harlan Sur pointed out that AMD's operating expense was $200 million higher than guidance, marking several quarters of the company "overshooting expenses."
CNBC Pro subscribers can read more here.
— Lisa Kailai Han
Eli Lilly shares jump 8% after company reports better-than-expected fourth-quarter results, strong guidance
A screen displays the logo and trading information for Eli Lilly and Company on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 21, 2025.
Brendan McDermid | Reuters
Eli Lillyon Wednesday posted fourth-quarter earnings and revenue and 2026 guidance that blew past estimates, as demand for its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro soars.
The pharmaceutical giant anticipates its 2026 revenue will come in between $80 billion and $83 billion. Analysts expected revenue of $77.62 billion, according to LSEG.
Lilly also expected adjusted earnings to be between $33.50 and $35 per share for the year. That compares with analysts' estimate of $33.23 per share, according to LSEG.
The strong outlook comes days after Lilly CEO Dave Ricks told CNBC in an exclusive interview that he expects upcoming government Medicare coverage of obesity treatments to expand the U.S. market for those drugs this year, saying it's a "big multiplier on the eligible pool" of patients. Read more.
LLY, 1-day
— Annika Kim Constantino
Why AMD is down after earnings
Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during a fireside chat at the Indian Institute of Science (IISc) in Bengaluru, India, on Thursday, Nov. 21, 2024.
Gabriela Bhaskar | Bloomberg | Getty Images
Chipmaker Advanced Micro Devices (AMD)dropped 9% in early market premarket trading on Wednesday after its first-quarter forecast fell short of some analyst expectations.
AMD reported revenue of $10.27 billion for the fourth quarter that topped LSEG consensus estimates of $9.67 billion on Tuesday.
The company said it expects $9.8 billion in revenue for the first quarter, plus or minus $300 million, versus expectations of $9.38 billion.But some analysts had predicted the chipmaker would provide stronger guidance for the first-quarter amid an ongoing boom in spending for the processors needed to power AI. Read more.
AMD, 1-day
— Kai Nicol Schwarz
Chipotle, AMD, Match Group among stocks moving after Tuesday's close
Check out the companies making headlines in after-hours trading.
- Chipotle — Shares of Chipotle tumbled 6% after the fast-casual burrito chain reported that traffic to its restaurants declined for the fourth straight quarter. The company also projected flat same-store sales growth for 2026. To be sure, adjusted earnings and revenue for Chipotle's fourth quarter still beat analysts' consensus expectations, according to LSEG.
- Match Group – The maker of the online dating app saw shares jump 7%. Fourth-quarter earnings came in at 83 cents per share on revenue of $878 million, surpassing the LSEG consensus estimate for 70 cents per share and $871 million. The company said it expects full-year cash flow to range between $1.085 to $1.135 billion, topping the FactSet consensus of $955.4 million.
- Advanced Micro Devices — The chipmaking stock declined about 7%. AMD said that it sees first-quarter revenue landing at $9.8 billion, plus or minus $300 million, while analysts sought $9.38 billion. The company also called for first-quarter non-GAAP gross margin of about 55%, landing roughly in line with the consensus StreetAccount estimate of 54.5%.
- Take-Two Interactive Software – Shares popped nearly 5%. The video game publisher raised its 2026 guidance for net bookings, calling for a range of $6.65 billion to $6.7 billion.
For the full list, read here.
— Pia Singh
