The S&P 500 and Nasdaq declined as investors awaited earnings reports from two technology companies.
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July 22 (Reuters) - The Standard & Poor's 500 and Nasdaq Composite indexes closed lower on Wednesday amid a mixed performance from technology stocks and as investors awaited earnings reports from two giant companies to assess the strength of the AI-related market recovery.
As a result of gains over several months, the main indexes have climbed from their lowest levels recorded in March, but the mixed performance of heavyweight semiconductor stocks and the decline in software stocks have limited those gains.
The Philadelphia Semiconductor Index closed higher after recovering from early losses.
Investors are awaiting the second-quarter results of giants Alphabet and Tesla after the market closes, looking for new indications of the companies' worth of investing billions of dollars in artificial intelligence.
Kevin Gordon, head of macro research at Charles Schwab, said, "Investors have become more discerning and selective about the areas in which they choose to invest in the AI sector." Gordon noted that software stocks declined while chip stocks rose during the session.
Preliminary data indicates that the Standard & Poor's 500 index closed down 10.72 points, or 0.14 percent, at 7498.48, while the Nasdaq Composite index fell 145.48 points, or 0.56 percent, to 25691.72.
The Dow Jones Industrial Average rose 1.52 points to 52,226.16 points.