U.S. markets ended mostly lower on Wednesday as investors weighed the latest corporate earnings and economic data. A report released by the Institute for Supply Management (ISM) showed a slight uptick by its reading on U.S. service sector activity in the month of July. The ISM Services PMI in the US edged up to 54.1 in July 2026 from 54 in June, slightly below forecasts of 54.5, while continuing to point to expansion in the services sector. Business activity (59.1 vs 55.4), new orders (57.2 vs 55.1) and inventories (51.4 vs 51.2) increased faster but employment returned to contraction territory after only one month in expansion (47.4 vs 51.2). Besides, payroll processor ADP released a report showing private sector employment in the U.S. increased by less than expected in the month of July. Private businesses in the US added 44,000 jobs in July 2026, the least in six months, following a downwardly revised 95,000 gain in June and below forecasts of 70,000. The services sector added 47,000 jobs, led by education and health services (36,000), financial activities (10,000), professional and business (9,000) and information (5,000) while job losses occurred in trade, transportation, and utilities (-8,000) and leisure and hospitality (-11,000).
On the sectoral front, Energy stocks showed a significant move to the downside over the course of the session amid a continued decrease by the price of crude oil, with U.S. crude oil futures falling by 1 percent after plummeting by more than 10 percent over the two previous sessions. Reflecting the weakness in the sector, the NYSE Arca Oil Index and the Philadelphia Oil Service Index plunged by 3 percent and 2.5 percent, respectively.
Nasdaq slipped 221.55 points or 0.83 percent to 26,363.43 and S&P 500 fell 12.97 points or 0.17 percent to 7,723.55, while Dow Jones Industrial Average rose 263.24 points or 0.49 percent to 54,349.12.
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