US open: Dow trades higher, tech jitters keep Nasdaq in the red

(Sharecast News) - Wall Street trading got off to a mixed start on Wednesday as tech stocks continued to weigh on the Nasdaq.

As of 1520 GMT, the Dow Jones Industrial Average was up 0.69% at 49,580.23, while the S&P 500 shed 0.11% to 6,909.86 and the Nasdaq Composite came out of the gate 0.69% weaker at 23,095.46.

The Dow opened 339.24 points higher on Wednesday, more than reversing losses recorded in the previous session (166.67) as traders rotated out of a number of big-name tech firms.

Major indices were mixed at the open on Wednesday, with the tech-heavy Nasdaq still under pressure after most major tech names traded lower in the previous session, with several of the socalled 'Magnificent Seven' heading south. Microsoft and Meta both slipped more than 2% on Tuesday, while Apple edged down and Nvidia also extended its yeartodate losses with a near3% decline. Weakness across the software sector persisted as Salesforce dropped around 7%.

Chipmaker AMD was also in focus at the open following betterthanexpected fourthquarter results, but still traded lower in pre-market action after its first-quarter forecast fell short of what some analysts had expected amid the ongoing AI spending boom.

In terms of Wednesday's earnings, Eli Lilly said Q4 revenues had increased 43% to $19.3bn, driven by volume growth from Mounjaro and Zepbound, while earnings per share grew 51% to $7.39 per share on a reported basis, while Stanley Black & Decker posted Q4 adjusted earnings that came in ahead of Wall Street expectations, even as revenues fell short of estimates.

Rideshare giant Uber traded sharply lower before the open after its Q4 earnings missed Wall Street expectations, while KFC and Taco Bell parent company Yum! Brands reported quarterly earnings that didn't quite match up to expectations, but said its Q4 revenues had come in better than expected.

Google parent company Alphabet will report after the close.

On the macro front, private sector employment in the US rose less than expected in January, according to figures released by ADP on Wednesday. Employment increased by 22,000 from December, versus expectations for a 45,000 jump. Meanwhile, the December figure was revised to show that 37,000 jobs were added, down from 41,000. The data also showed that year-on-year pay growth for job-stayers was little changed in January at 4.5%. For job-changers, annualised pay growth eased to 6.4% from 6.6%.

"Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024," said Nela Richardson, chief economist at ADP. "While we've seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable."

Elsewhere, US mortgage applications fell by 8.9% in the week ended 30 January, according to the Mortgage Bankers Association of America, extending the previous week's 8.5% drop. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rate, fell by 5% week-on-week, while applications to purchase a home sunk 14%.

On another note, S&P Global's services PMI increased to 52.70 points in January, up from 52.50 points in December, pointing to a continued, albeit modest, expansion in the service sector last month, while its composite PMI rose to 53.0 in January, above both preliminary estimates of 52.8 and December's 52.7 print.

Finally, the Institute for Supply Management's services PMI was unchanged at 53.8 in January, matching December's downwardly revised reading and coming in ahead of expectations for 53.5, pointing to another solid expansion, driven by an accelerated growth in business activity, which climbed to 57.4 from 55.2.

ISM chair Steve Miller said: "There was more respondent commentary in January on tariff impacts and uncertainty, potentially the result of annual contract renewals and geopolitical tensions. Gasoline and diesel fuel continued to be cited as commodities down in price. With the highest Business Activity and Supplier Deliveries index readings since October 2024, whether pricing increases will stick or expand needs to be closely watched."

Reporting by Iain Gilbert at Sharecast.com