US tech shares continued to face pressure on Wednesday in a mixed session for global equities as investors steer funds to industrials and other old-economy sectors.

The Dow rose but the Nasdaq dropped more than one percent for a second straight day as chip company AMD nose-dived after earnings and some other tech names sputtered amid AI disruption fears.

"We're seeing a lot of rotation from growth stocks to value stocks, moving from tech into other sectors," said Steve Sosnick of Interactive Brokers.

Shares of Advanced Micro Devices sank more than 17 percent despite solid fourth-quarter earnings that concluded a year of strong revenue growth due to artificial intelligence.

"Results from tech continue to be coming in pretty strong and solid, but it is a matter of expectations that are creating some disappointments, especially at a time when sentiment around the sector is negative," said Angelo Kourkafas of Edward Jones.

"At the same time as this is happening, on another corner of the market, there's a lot of excitement."

Investors were spooked on Tuesday by news that AI startup Anthropic – which created the Claude chatbot – had unveiled a tool that could be used by firms to carry out legal work.

The announcement hit firms in the software, financial services and asset management industries.

"Investors fear the AI juggernaut will cut deeply into earnings as agents take over workflows and replace more traditional programmes," said Susannah Streeter, chief investment strategist at Wealth Club.

Elsewhere, European and Asian markets mostly closed higher, with London's FTSE setting a fresh record.

Oil prices piled on more than three percent following a report that talks between the United States and Iran expected for Friday had fallen through.

Meanwhile, data showed private sector employment in the United States rose by a less-than-expected 22,000 jobs in January.

The "update serves as a reminder that the US remains far from a robust jobs market," said eToro analyst Bret Kentwell.

If the jobs report prepared by the US government, delayed by the shutdown, "shows a similar dynamic, it should at a minimum help keep the Fed from adopting an overly restrictive stance as the first quarter progresses," he added.

The US Federal Reserve last week resisted pressure from the Trump Administration to cut interest rates, saying the US economy is expanding at a solid rate.

Investors expect it may next cut rates in June or July if the weakness in the labour market continues.

Separate data showed the US services sector maintained growth in January, boosting sentiment.

The S&P 500 fell 0.5 percent, to 6,882, the Dow rose 0.5 percent, to 49,501, while the Nasdaq fell 1.5 percent, to 22,904. (AFP)