Major US stock indices showed mixed performance on Wednesday, with the S&P 500 declining while the Nasdaq posted gains driven by artificial intelligence stocks. The session saw intraday record highs before financials and housing-related stocks pulled markets lower following policy announcements from President Trump.

Market Performance Summary

The following table summarizes the closing data for major US indices:

Sector Performance and Policy Impact

Financials led the decline with the S&P 500 financials index dropping 1.40% after Trump announced plans to ban Wall Street investors from buying single-family homes. Blackstone and Apollo Global Management fell more than 5.00%, while JPMorgan Chase declined 2.30% following a Wolfe Research downgrade to "peer perform" from "outperform."

Defense stocks also faced pressure as Northrop Grumman slid 5.50% and Lockheed Martin lost 4.80% after Trump stated he would not permit dividends or stock buybacks for defense companies until production issues are resolved.

AI Stocks Drive Nasdaq Gains

Technology stocks provided market support as investors renewed focus on artificial intelligence opportunities. Nvidia and Microsoft each rose approximately 1.00%, while Alphabet gained more than 2.00%. The sector received additional momentum from news that Anthropic is planning a multibillion-dollar fundraise valuing the company at $350.00 billion.

Top Performers and Decliners

The session's standout performers and decliners are detailed below:

Market Breadth and Economic Data

Declining stocks outnumbered advancing ones within the S&P 500 by a 3.4-to-one ratio. The S&P 500 recorded 28 new highs and 17 new lows, while the Nasdaq posted 106 new highs and 58 new lows. Trading volume was relatively heavy at 17.40 billion shares, above the 20-session average of 16.20 billion shares.

Economic data showed US job openings fell more than expected in November, while ADP reported private payrolls increased less than anticipated in December, though these releases had minimal impact on Federal Reserve rate cut expectations ahead of Friday's government payrolls report.

Wall Street stocks inched up early Wednesday, as investors embraced technology sector optimism from a major industry show while fresh employment data showed private sector hiring rebounded in December. The positive sentiment marked a continuation of the market's measured advance following recent volatility.

Market Opening Performance

The major US stock indexes displayed modest gains across the board:

Technology Sector Drives Optimism

The tech-focused Nasdaq Composite led the advance, adding 0.2% shortly after trading began. Market analysts attributed the positive momentum to renewed excitement about technology developments emerging from the Consumer Electronics Show in Las Vegas.

"There is a lot of reignited excitement about technology coming out of the Consumer Electronics Show, with each company talking about their plans for the future," said Art Hogan of B. Riley Wealth Management. "The drivers really are the same today as they were for the last two days, coming into the first full week of trading with some positive vibes."

Employment Data Shows Recovery

Markets also digested encouraging employment data for the US private sector. Payroll firm ADP reported that hiring increased by 41,000 jobs in December, signaling a recovery from November's job losses. While the figure came in slightly below consensus forecasts, it demonstrated positive momentum in the labor market.

Individual Stock Performance

The S&P 500 showed significant sector rotation with notable winners and losers:

Market Outlook

Investors are positioning for Friday's government payrolls report, which will provide a comprehensive gauge of labor market health. "This will be the first on-time jobs report in three months," Hogan noted, following disruptions from the recent government shutdown. The combination of technology sector optimism and stabilizing employment data suggests continued cautious optimism among market participants.