The tech-laden index fell.
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Expectations of interest-rate hikes and strong inflation continued to weigh on tech stocks, while investors await key jobs data out Friday.
The tech-heavy index fell 1.35% the day before. The S&P 500 futures were down while the Dow Jones futures were higher.
The US economy continues to improve and investors are optimistic that the Omicron coronaviruses variant is milder than previous versions.
The Federal Reserve's plans to raise interest rates this year caused bond yields to rise for the second day in a row. Analysts said higher yields and bets that inflation will stay high weighed on the index.
Richard Hunter, head of markets at Interactive Investor, said that rising Treasury yields in the US prompted a bout of rotation from high-growth stocks, such as technology, into value.
The yield on the bond fell slightly Wednesday. The yield on the 10-year US Treasury note was 1.642%, which was 2 basis points lower than it was a month earlier.
European stocks were up, with the Stoxx 600 up 0.18% and the London's FTSE 100 up 0.22%. Hong Kong's Hang Seng index was down 1.64% while Tokyo's Nikkei 225 was up 0.1%.
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Tech stocks surged after central banks slashed interest rates and bought bonds. As the economy slowed, investors rushed to buy companies they thought could keep growing.
The Fed has lined up plans to raise interest rates in 2021, which has led to a decline in those stocks. Many tech stocks, which are unprofitable or barely make money, lose their appeal because of these twin factors.
Peter Garnry, head of equity strategy at Saxo Bank, said that investors are increasing their exposure to stocks with positive inflation sensitivity.
Friday's non-farm payroll figures will give a snapshot of the US labor market. The US economy is expected to have added 424,000 jobs in December, after an increase of 210,000 in November.
A stronger-than- expected figure is likely to raise expectations that the Fed will start hiking interest rates soon, and could spell trouble for tech.
Oil prices were little changed after a strong start to the year. The price of oil was up slightly while the price of oil was down.
Business Insider has an original article.
