Stock market today: Indexes slide as chipmaker rout drags tech ahead of key earnings

• Indexes slipped on Wednesday led by a sell-off in chip stocks.
• Alphabet rose after delivering a big earnings beat.

US stock ended lower on Wednesday as encouraging tech earnings were eclipsed by a sell-off among semiconductor shares.

Alphabet's big earnings beat helped send its stock up almost 3% in the session, but major indexes fell as chipmakers suffered losses.

AMD and Super Micro Computer led the rout. The former fell on weak fourth-quarter guidance, while Super Micro plummeted on news that its auditor resigned due to company concerns. AMD dropped almost 11%, while SMCI plunged 33%.

However, investors have more big tech earnings to look forward to.

Shares of Microsoft and Meta traded higher as traders anticipated their financial results on after the closing bell. Apple and Amazon are on deck to report after the close on Thursday.

Macroeconomic data released on Wednesday highlighted ongoing strength in the US economy, diluting concern that interest rates might need to drop quickly to propel growth.

Third-quarter US real GDP came in at an annualized rate of 2.8%, driven by a strong consumer. PCE, the Federal Reserve's preferred inflation gauge, reached 2.2% — close to the central bank's target rate of 2%.

"This is excellent on the GDP, particularly when you look at the consumer spending," economist Claudia Sahm told Bloomberg TV. "It's not just one quarter: we have now put together four quarters that are about three percent growth in consumer spending, inflation-adjusted. "

The labor market also appears strong, as ADP hiring rose by its fastest rate in over a year. The data potentially sets the stage for another big nonfarm payrolls report on Friday, which will help inform the Fed's next move at its November 6-7 policy meeting.

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 5,813.67, down 0.33%

  Dow Jones Industrial Average: 42,141.54, down 0.22% (-91.51 points)

• Nasdaq composite: 18,607.93, down 0.56%

Here's what else is going on:

• Top economist David Rosenberg says Canadian stocks look poised to outperform the S&P 500.
• Nvidia is undervalued as $9 trillion is still needed for superintelligent AI, SoftBank's CEO said.
• US industrial re-shoring could be a $10 trillion economic opportunity, according to Morgan Stanley.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil jumped 2.38% to $68.81 a barrel. Brent crude, the international benchmark, climbed 2.31% at $72.76 a barrel.
• Gold inched up 0.59% to $2,797.6 an ounce.
• The 10-year Treasury yield stayed essentially flat at 4.282%.
• Bitcoin eased by 1.43% to $71,786.57