The S&P 500 fell on Wednesday as the sell-off in technology stocks intensified, with losses in Advanced Micro Devices hindering the trade.

The broad market index slid 0.51% and closed at 6,882.72, while the Dow Jones Industrial Average added 260.31 points, or 0.53%, and settled at 49,501.30. The Nasdaq Composite dropped 1.51% to end at 22,904.58. Adding to the risk-off sentiment, bitcoin fell more than 3% after earlier breaking below the $73,000 level.

Shares of AMD weighed on the broader market, pulling back 17% after its first-quarter forecast underwhelmed some analysts. Defending the results, CEO Lisa Su told CNBC Wednesday that the company has seen an increase in demand in recent months, saying, "AI is accelerating at a pace that I would not have imagined."

Still, other names in the chips space such as Broadcom and Micron Technology suffered losses as well. The former was down 3.8%, while the latter fell 9.5%.

Some software stocks also continued to face pressure, including Oracle and CrowdStrike, which extended their decline from the prior trading day. Oracle shed 4%, while CrowdStrike lost more than 1%. While the group has been a source of weakness recently, certain names like Microsoft found stability Wednesday. That stock was up 1%.

"Toward the end of last year, you began to see the market differentiate between what the market perceived to be the winners and losers in the [artificial intelligence] space," Scott Welch, chief investment officer at Certuity. "I think you're seeing a continuation of that now."

For the Dow, Amgen was among the names fueling outperformance. The biotechnology stock was higher by 8% after the company reported better-than-expected earnings and revenue for the fourth quarter. Honeywell also offered a boost to the index, rising more than 1% as investors moved from tech into more value-oriented names.

"It's just a natural rotation," Welch said. "It's been such a large cap growth-dominated space for so long — value was just punished, small cap was punished and non-U.S. markets were just kind of ignored when, in fact, they basically doubled the results of the domestic market last year."

"All of this has been sort of coming for a while, and I think you're just beginning to see that play out," he added.

Meanwhile, ADP on Wednesday released its monthly look at private payroll growth for January, which showed an increase of just 22,000 on the month. That's below the gain of 45,000 jobs that economists polled by Dow Jones had forecast.

The release generally precedes the Bureau of Labor Statistics report on nonfarm payrolls, but that won't be out this week due to the partial government shutdown. The shutdown, which began Saturday, officially ended Tuesday, when President Donald Trump signed a funding bill into law.

On Tuesday, the major averages sold off as investors gravitated out of riskier growth names and toward cyclical stocks like Walmart. Nvidia and Microsoft each lost almost 3% in the previous session. Big-name AI infrastructure names Broadcom, Oracle and Micron also closed in the red. The tech sector was the worst performer in the S&P 500, down more than 2%.

All eyes are now on Alphabet, as the company is slated to report earnings after the bell Wednesday. The quarterly results of fellow "Magnificent Seven" member Amazon are due Thursday.