Dow Jones and Nasdaq Index: US Indices Diverge as Microsoft Drags Tech Stocks Today

Group 1: Company Performance - Microsoft experienced a nearly 2% decline after reports of cutting AI-related sales quotas, although the company refuted this claim, leading to a partial stock rebound [1] - Nvidia and Broadcom also saw slight declines, with Micron down more than 1% as the AI sector faced selling pressure [1] - Marvell's stock rose over 3% due to positive investor sentiment regarding its data-center growth outlook [5] - American Eagle's stock surged more than 14% after the company raised its full-year forecast, benefiting from strong holiday commentary [5] Group 2: Market Trends - The energy sector led gains with a 1.6% increase, while financials and consumer discretionary sectors also showed positive movement [2] - The technology sector was down 0.36%, indicating a rotation of traders into cyclicals and areas more sensitive to potential rate cuts [2] - Traders are interpreting a weak ADP report, which showed a 32,000 drop in private payrolls, as bullish, with a high probability of a rate cut by the Fed [3] - A slightly better-than-expected ISM services reading helped alleviate recession concerns, keeping dip buyers active in the market [4]