U.S. markets closed lower on Wednesday, amid concerns that AI-related companies and chipmakers may have become overvalued. Investors also remained cautious amid uncertainty over developments in the Middle East. Sentiments were further dampened after the Institute for Supply Management (ISM) reported a modest decline in U.S. manufacturing activity in June. The ISM said its Manufacturing PMI dipped to 53.3 in June from 54.0 in May, although a reading above 50 still indicates expansion. Street had expected the index to edge down to 53.9. Meanwhile, a report released by payroll processor ADP showed that U.S. private sector employment increased by less than expected in June. The report said private sector employment rose by 98,000 jobs in June, following an increase of 122,000 jobs in May. Street had expected private sector employment to grow by 117,000 jobs.
Nasdaq down 173.69 points or 0.66 percent to 26,040.03, S&P 500 declined 16.13 points or 0.22 percent to 7,483.23 and Dow Jones Industrial Average decreased 13.96 points or 0.03 percent to 52,305.24.
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