US stocks held most of their losses on Wednesday on further fragility for chip producers ahead of major tech earnings, while the Federal Reserve held rates unchanged.
The S&P 500 and the Dow were slightly lower, while the Dow fell nearly 700 points.
Microsoft and Meta were muted ahead of their earnings reports after the bell, the latest signal for AI infrastructure spending.
Concerns that AI capital expenditure is being overdone recently pressured Magnificent 7 stocks and triggered a selloff for chip producers that trimmed their surge late last quarter.
Micron, Applied Materials, and Sandisk sank between 2% and 5% amid the pessimistic results by SK Hynix.
Meanwhile, the Fed held rates unchanged in the least certain meeting in the last 15 years, featuring three dissents for a hike.
The Dow was pressured by a flare-up in oil prices following fresh strikes between Iran and the US, adding to pro-inflationary risks.
Visa rebounded and gained 1% after posting growth in revenue last quarter.