US stocks closed lower on Wednesday, led by a significant dip in chipmaker shares, as Advanced Micro Devices (AMD) issued a disappointing forecast. The Dow Jones Industrial Average dropped 91.51 points, or 0.22%, to 42,141.54, while the S&P 500 declined by 0.33% to 5,813.67, and the Nasdaq Composite slipped 0.56% to 18,607.93.

AMD shares plummeted 10.6% due to underwhelming sales forecasts for its artificial intelligence chips, weighing on the broader semiconductor sector. Nvidia also fell, declining 1.4%. Tech giant Alphabet managed a 2.8% rise after posting stronger-than-expected quarterly revenue on Tuesday, providing some relief to the tech-heavy Nasdaq. However, Meta Platforms, the parent company of Facebook, saw shares dip 1.5% in after-hours trading due to anticipated infrastructure expenses linked to AI advancements.

Investor attention remains heavily focused on earnings reports from large-cap tech companies, with both Apple and Amazon scheduled to announce results on Thursday. Their performances could shape broader market sentiment as these companies play a crucial role in the year's gains.

Gold surged to an all-time high as uncertainty around the upcoming 5 November presidential election increased demand for safe-haven assets. Spot gold rose 0.5% to a record US$2,788.87 per ounce, reflecting investor caution. A Reuters/Ipsos poll indicated a tight race between Vice President Kamala Harris and former President Donald Trump, with Harris leading Trump 44% to 43% among registered voters.

Meanwhile, bitcoin fluctuated near record highs, briefly dipping by 0.12% to US$72,221 as investors weighed the possible market impacts of a Trump win, which many perceive as favourable to cryptocurrency.

The dollar softened slightly against other major currencies following stronger-than-expected US payroll data and the release of the UK's budget. This data showed robust private payroll growth in October, while the main US jobs report for October is due on Friday.

In energy markets, oil prices rebounded as US crude inventories fell unexpectedly. Brent crude finished the day up 2.01% at US$72.55 per barrel, while West Texas Intermediate crude rose 2.08% to US$68.61.

With attention shifting to upcoming data and earnings, investors remain cautious, navigating both market volatility and shifting economic indicators.

Reuters