News

US stocks ended lower on Wednesday, with the benchmark S&P 500 snapping a seven-day winning streak amid a sell-off in tech.

Major averages tumbled after hitting records in Tuesday's session. The Dow Jones Industrial Average dropped more than 100 points and the Nasdaq Composite fell 0.6%. Bond yields were lower, with the 10-year Treasury yield down five basis points to 4.248%.

Tech led the declines on Wednesday. Dell shares dropped as much as 12% after the company cut revenue guidance for the fourth quarter.

In a call with investors after reporting earnings on Tuesday, Dell called AI a "robust opportunity" for its business but warned that the path would "not be linear," sparking concern over spending in the artificial intelligence space.

Mega-cap tech stocks declined during the day, with Nvidia, Microsoft, Amazon, and Meta all ending lower.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

Markets also took in personal consumption expenditures price data for October, the Fed's preferred measure of inflation. Core PCE inflation grew 2.8% year-per-year, slightly hotter than last month, but in line with economists' expectations.

Investors ramped up their bets for coming Fed rate cuts, despite earlier concern that central bankers could take a slower approach to easing monetary policy . Odds for a 25 basis point rate cut in December jumped to 70%, though most traders doubt the Fed will follow with another quarter-point cut in January, according to the CME FedWatch tool.

"This is a nice Black Friday gift for the Fed," Scott Helfstein, the head of investment strategy at Global X, said in a note. "The inflation numbers came in as expected, accelerating slightly from recent readings, but still very close to the Fed target. This is not likely to alter the Fed rate path and another 25 bp cut in December is still likely."

Other market commentators, though, say the path forward is still uncertain.

"Today's data shouldn't change views of the likely path for disinflation, however bumpy. But a lot of observers, probably including some at the Fed, are looking for reasons to get more hawkish on the outlook given the potential for inflationary policy change like new tariffs," David Alcaly, the lead macroeconomic strategist at Lazard Asset Management, said in a note.