US stocks in holding pattern as tech continues stumble

U.S. stocks hovered around the flatline Wednesday as technology continued to pressure the broader market lower following a slump in the prior session.     

At 12:59 ET (17:59 GMT), the Dow Jones Industrial Average fell 33 points, or 0.1%, the S&P 500 index dropped 0.1%, and the NASDAQ Composite slipped 60 points, or 0.3%. Tech struggles to shake off malaise even as Treasury yields steady

Tech stocks remained under pressure following a sell off in the prior session even as Treasury yields steadied following a spike on Tuesday. 

Treasury yields steadied after Fed governor Christopher Waller backed further rate cuts amid expectations that inflation will likely continue to fall.  

Most of the megacap tech stock were in the red, with Apple Inc (NASDAQ:AAPL ), Alphabet Inc Class C (NASDAQ:GOOG ), Meta Platforms Inc (NASDAQ:META ), trading in the red, while NVIDIA Corporation (NASDAQ:NVDA ) hovered near the flatline.

Palantir Technologies Inc (NASDAQ:PLTR ), meanwhile, fell further on Tuesday, as concerns about frothy valuations remain a concern. The stock has slumped about 16% since hitting an all-time high last month.  Employment data comes in strong ahead of nonfarm payrolls

The number of Americans filing for first-time unemployment benefits unexpectedly edged down last week, touching the lowest level since February, in a sign of strength in the labor market.

Initial claims for state jobless aid slipped to 201,000 during the week ended on January 4, while the four-week moving average, which aims to account for volatility in the weekly returns, decreased to 213,000. It had previously stood at 223,250.

Elsewhere, private payrolls increased by 122,000 jobs last month, after advancing by 146,000 in November, the ADP National Employment Report showed.

A raft of economic figures earlier this week also pointed to an unexpected increase in job openings and sticky inflation. Taken together, the readings -- which come ahead of the all-important monthly US employment report later this week -- bolstered bets that the Federal Reserve will not be in a rush to roll out further possible interest rate reductions in 2025.

Investors will also be keeping tabs on a speech from Fed Governor Christopher Waller on Wednesday, as well as minutes from the rate-setting Federal Open Market Committee's latest meeting, for any more indications on the central bank's policy trajectory. Exxon Mobil flags hit to earnings 

In the corporate sector, Exxon Mobil (NYSE:XOM ) fell 1.5% after the oil major warned that a decline in oil refining profits, along with weak returns from across its operations, would dent its fourth-quarter income by around $1.75 billion versus the prior three-month period.

London-based rival Shell (NYSE:SHEL ) stock fell 2% after it flagged that it will book a charge of $1.3 billion in the fourth quarter related to permits in Germany and the US. It added in an update that earnings from its integrated gas division will also be "significantly lower" than the third quarter.

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com