The Nasdaq and S&P 500 fell as technology shares weakened ahead of the Federal Reserve’s Jackson Hole symposium, where investors are focused on potential signals about the path of interest rates and the economic outlook. According to Reuters, major megacaps declined, contributing to a broader pullback in growth names.
Tech-led declines ahead of Powell’s comments
The Nasdaq Composite lost 314.82 points, or 1.46%, to 21,314.95, while the S&P 500 fell 37.78 points, or 0.59%, to 6,411.37. The Dow Jones Industrial Average rose 10.45 points to 44,922.27, roughly flat on the day. Nvidia dropped 3.5%, its sharpest decline in nearly four months, as investors reassessed big tech positions ahead of the Aug. 21–23 gathering in Jackson Hole, Wyoming.
Market participants are watching for cues from Fed chair Jerome Powell. One portfolio manager said some investors are hedging going into the event, anticipating a potentially more hawkish tone. Interest rate futures imply two 25-basis-point cuts this year, with the first expected in September, based on LSEG data cited by Reuters.
Some traders also pointed to unease around AI-related shares after OpenAI CEO Sam Altman said in an interview last week that they are in a bubble, Reuters reported. Steve Sosnick of Interactive Brokers said profit-taking in tech and rotation into other sectors is weighing on the broader market due to the heavy index weights of large-cap technology stocks.
Sector moves, corporate highlights, and consumer watch
Winners, losers, and what’s next
Six S&P 500 sectors rose, led by real estate, up 1.8%, helped by better-than-expected U.S. housing data. Technology and communications services fell more than 1.9% and 1.2%, respectively. A Reuters poll indicated the S&P 500 is expected to end 2025 at 6,300, just below current near-record levels, reflecting tempered optimism amid tariff concerns and uncertainty around rate cuts.
The Dow briefly touched a record intraday high, supported by Home Depot, which rose 3.17% after keeping its annual forecasts intact, despite missing quarterly estimates. Lowe’s gained 2.18% ahead of results from big-box retailers Walmart and Target later this week, as investors look for signals on consumer spending. One chief economist said consumers remain cautious and are watching for the effects of tariffs on holiday sales.
Intel jumped roughly 7% after receiving a $2 billion capital injection from SoftBank Group. Palo Alto Networks advanced 3.06% after projecting fiscal 2026 revenue and profit above estimates. Medtronic fell 3.13% after saying it would add two new directors to its board following a large stake by Elliott Investment Management. Market breadth was mixed, with advancing issues topping decliners on the NYSE by a 1.06-to-1 ratio.
