Following the weakness seen in the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.
The futures remained little changed even after payroll processor ADP released a report showing private sector employment in the U.S. increased by much less than expected in the month of January.
ADP said private sector employment rose by 22,000 jobs in January after climbing by a downwardly revised 37,000 jobs in December.
Economists had expected private sector employment to grow by 45,000 jobs compared to the addition of 41,000 jobs originally reported for the previous month.
Nonetheless, tech stocks may see further downside after a rotation out of the sector contributed to the weakness in Tuesday's session.
A steep drop by Advanced Micro Devices (AMD) is likely to weigh on the sector, with the chipmaker plunging by 10.1 percent in pre-market trading.
AMD is under pressure after reporting better than expected fourth quarter results but providing first quarter guidance that disappointed some analysts.
On the other hand, shares of Super Micro Computer (SMCI) are surging by 9.5 percent in pre-market trading after the company reported fiscal second quarter results that exceeded estimates and raised its full-year revenue forecast.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of January.
The ISM's services PMI is expected to dip to 53.5 in January from 54.4 in December, but a reading above 50 would still indicate growth.
Stocks moved notably lower during trading on Tuesday, more than offsetting the strength seen in the previous session. The major averages all moved to the downside on the day, with the tech-heavy Nasdaq showing a particularly steep drop.
The major averages climbed well off their worst levels in the latter part of the session but remained in negative territory. The Nasdaq slumped 336.92 points or 1.4 percent to 23,255.19, the S&P 500 slid 58.63 points or 0.8 percent to 6,917.81 and the Dow fell 166.67 points or 0.3 percent to 49,240.99.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan's Nikkei 225 Index decreased by 0.8 percent, while China's Shanghai Composite Index advanced by 0.9 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.4 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.'s FTSE 100 Index is up by 1.2 percent.
In commodities trading, crude oil futures are rising $0.18 to $63.39 a barrel after surging $1.07 to $63.21 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $5,070.70, up $135.70 compared to the previous session's close of $4,935. On Tuesday, gold soared $282.40.
On the currency front, the U.S. dollar is trading at 156.72 yen compared to the 155.73 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1820 compared to yesterday's $1.1818.
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Business News
January 30, 2026 15:51 ET The Federal Reserve policy decision was the main event in the final week of January, which saw a heavy flow of economics news. Several data reflecting the trends in the U.S. economy were also released during the week. The interest rate decision from Canada also was in focus. In Europe, economic sentiment data gained attention. The policy decision from Singapore was the highlight in Asia.