US equity markets closed lower on Wednesday, weighed down by renewed selling in artificial intelligence and semiconductor stocks.

The Nasdaq Composite fell 1.3% as investors rotated out of high-growth tech names, while the Dow Jones Industrial Average managed to post modest gains, highlighting a divergence in market sentiment.

In a notable contrast to the broader tech selloff, airline stocks bucked the trend.

The sector benefited from a continued decline in oil prices, which reduced input cost pressures for carriers.

This dynamic allowed aviation names to outperform as traders sought defensive positioning amid the tech-led weakness.

Micron Technology also faced headwinds, with shares retreating ahead of its upcoming earnings report.