USA: Stocks Sharply Lower on AI Fears.

US stocks sold off on Wednesday, with the S&P 500 down about 1%, the Nasdaq sliding 2.3%, and the Dow slightly higher, as technology led a broad risk-off move tied to renewed AI disruption fears and weak guidance. The decline was driven by semiconductors after AMD plunged nearly 17% on a disappointing outlook, sparking heavy losses across the chip complex, including Broadcom (-7%), Micron (-11%), Lam Research (-10%), and Applied Materials (-9%). Software stocks also extended recent declines as investors reassessed competitive risks following new AI product releases, raising concerns that automation could erode pricing power and margins across enterprise, legal, and financial software. Outside tech, defensive sectors outperformed, with health care gaining support after Amgen surged over 7% on strong earnings. Meanwhile, the ADP report showed private payroll growth slowed to just 22K in January, reinforcing signs of cooling labor demand and offering little support for equities.