Wall Street dips on tech pressure

US stock indices fell during Thursday’s trading session, weighed down by renewed pressure on the technology sector as investors assessed the latest corporate earnings results.

Shares of software companies slid into bear market territory, amid growing concerns that the rapid pace of development in artificial intelligence technologies could undermine the business models of many firms operating in the sector.

Markets also digested the Federal Reserve’s decision on Wednesday to keep interest rates unchanged, alongside signals that economic activity continues to grow at a solid pace, with early signs of stabilization emerging in the labor market. These factors reinforced expectations that the US central bank may pause its rate-cutting cycle for a period.

In trading, the Dow Jones Industrial Average fell by 0.1%, or 67 points, to 48,948 by 17:11 GMT. The broader S&P 500 declined by 0.8%, or 57 points, to 6,921, while the Nasdaq Composite dropped sharply by 1.7%, or 415 points, to 23,445.