Stock indexes closed down on Wednesday, with the S&P 500, Dow Jones, and Nasdaq 100 all hitting 1.5-week lows. Chip stocks and data storage companies led the market lower, with mining stocks also sliding. Higher bond yields, due to positive jobless claims data, impacted stocks negatively.

Trading activity was low, with markets in Germany and Japan closed for the holiday. US weekly jobless claims unexpectedly dropped to a 1-month low. Positive Chinese economic data, including manufacturing PMI growth, supported global growth prospects.

US economic news will be in focus this week, with the S&P manufacturing PMI expected to stay the same. Markets are pricing in a low chance of a rate cut at the next FOMC meeting. Overseas markets closed mixed, with European bond yields lower and ECB rate hike expectations low.

Chip makers and data storage companies saw losses on Wednesday, dragging the market down. The Magnificent Seven tech stocks also closed lower. Mining companies retreated as gold and silver prices fell. Corcept Therapeutics dropped after an FDA rejection, while GlobalFoundries fell after a downgrade.

Vanda Pharmaceuticals surged after an FDA approval, while Nike led gainers after insider buying. Terawulf Inc also saw gains after an upgrade. Earnings reports for Lifecore Biomedical are due on 1/2/2026. Market insights and stock movements provided by Barchart.

Read more at Nasdaq: Stocks Settle Lower on Tech Weakness and Higher Bond Yields