US STOCKS-Wall St slips on losses in financials, tech

By Twesha Dikshit and Shashwat Chauhan

Feb 19 (Reuters) - Wall Street's main indexes fell on Thursday, with financials sliding amid a broad selloff in private equity companies and weakness in some technology stocks, though some earnings-driven gains in industrials helped limit losses.

Private equity companies slid after Blue Owl Capital's OWL.N decision to sell $1.4 billion in assets and freeze redemptions at one of its funds to manage debt and return capital.

Apollo Global Management APO.N, Ares ARES.N, KKR & Co KKR.N and Carlyle Group CG.O fell sharply, while Blue Owl was down 9%.

Shares of Walmart were also down marginally after new CEO, John Furner, kicked off his tenure with a conservative fiscal 2027 forecast as well as a $30 billion buyback plan.

However, more than 12% gains in Deere & Co DE.N after the farm-machinery maker raised its annual profit forecast and beat first-quarter results estimates, helped curb losses.

Megacap and growth stocks were mixed, though chip stocks were under pressure with the Philadelphia SE Semiconductor Index .SOX down 0.7%.

Broader AI-linked and megacap technology stocks are facing turbulence amid concerns over high valuations and limited evidence that significant investments in AI are driving revenue and profit growth.

Sectors ranging from software to trucking have also been hit by concerns that rapidly improving AI tools could disrupt their business models.

"All of a sudden (markets) discovered that AI is going to have a big impact on the way businesses are being done ... it's just an over-reaction," said Max Wasserman, founder and senior portfolio manager at Miramar Capital.

At 11:41 a.m. ET, the Dow Jones Industrial Average .DJI fell 236.36 points, or 0.48%, to 49,426.30, the S&P 500 .SPX lost 19.45 points, or 0.28%, to 6,861.86 and the Nasdaq Composite .IXIC lost 41.72 points, or 0.18%, to 22,711.92.

In earnings-related moves, ad giant Omnicom OMC.N jumped 13.1% after the company beat analysts' estimates for fourth-quarter revenue, while Carvana CVNA.O dropped 8.2% after the online used-car retailer missed fourth-quarter profit estimates.

Software provider EPAM Systems EPAM.N plunged 21.5% as its cautious first-quarter outlook disappointed investors.

The S&P 500 energy index .SPNY was up 0.9% as crude oil prices rose on mounting fears of a military conflict between the United States and Iran.

WHAT THE FED THINKS

Meanwhile, minutes from the U.S. Federal Reserve's most recent policy meeting released on Wednesday showed policymakers remained split about the policy path later this year.

Traders are currently pricing in the Fed to make its next move in June, with a roughly 60% chance for a rate cut of at least 25 basis points, according to CME's FedWatch Tool.

At least four central bank officials are scheduled to speak during the day.

Investors are assessing Thursday's weekly jobless claims data that pointed to a stabilizing labor market, and will closely parse the Personal Consumption Expenditure report - the Fed's preferred inflation gauge - which is due on Friday, for hints on the Fed's rate outlook.

Declining issues outnumbered advancers by a 1.55-to-1 ratio on the NYSE, and by a 1.44-to-1 ratio on the Nasdaq.

The S&P 500 posted 23 new 52-week highs and six new lows, while the Nasdaq Composite recorded 42 new highs and 101 new lows.