Coinbase, after a six-day rally, saw its stock dip 1% in premarket trading as analysts warned of a potential downtrend. Chart watchers noted that the crypto exchange’s 50-day moving average had crossed below its 200-day average, signaling possible weakness ahead.

In the homebuilder sector, KB Home’s stock plummeted more than 6% after reporting disappointing fiscal third-quarter earnings. The company posted earnings of $2.04 per share, missing estimates by 2 cents, and reported a drop in year-over-year housing gross margins. Rising costs and a softer housing market contributed to the lackluster results, weighing on the broader housing sector.

Sector Performances Show Broader Market Weakness

Most major sectors showed weakness on Wednesday. Consumer discretionary, consumer staples, and financials each posted moderate losses. The energy sector fell by 0.82%, while health care was down 0.72%, reflecting broader concerns about the economy’s growth trajectory. The technology sector, by contrast, gained 0.76%, buoyed by strength in AI-driven demand. Communication services also saw gains, rising 0.38% as tech-related stocks continued to outperform other sectors.

Outlook: Volatility Expected as Economic Data Looms