Today's Market: Dow Rises, Nasdaq Slides as Microsoft Sparks Fresh AI Selloff

U.S. stocks ended mixed on Wednesday as investors rotated out of technology names after fresh worries about artificial intelligence spending.

The Dow Jones Industrial Average climbed about 0.5%, while the S&P 500 edged higher. The Nasdaq Composite slipped about 0.4%, weighed by weakness across Big Tech.

Microsoft MSFT slid about 2% after a report said the company cut internal sales targets tied to some AI products. That move revived concerns that enterprise demand may be cooling.

Chipmakers followed lower. Nvidia NVDA, Broadcom AVGO and Taiwan Semiconductor Manufacturing TSM each fell about 1%, reflecting pressure across the semiconductor sector.

Economic data also played a role. ADP said private employers cut 32,000 jobs in November, against forecasts for a small increase. The pullback was led by small businesses, the firm said.

The report added to expectations the Federal Reserve may trim interest rates later this month.

Away from equities, bitcoin jumped more than 2% to a two-week high.

Marvell Technology MRVL climbed about 4% on an upbeat outlook, while American Eagle Outfitters (AEO) surged about 15% after strong holiday sales signs.