Wall Street’s main indexes fell as a cool-down in technology shares weighed on broader markets and investors braced for signals from the Federal Reserve’s Jackson Hole symposium later this week. According to Reuters, the Nasdaq touched a two-week low while the S&P 500 slipped to its weakest level in more than a week.
Tech-led pullback and chip stock pressure
After powering much of the rebound from April’s selloff, tech shares eased as investors reassessed valuations. Reuters reported the S&P 500 technology index fell 1.7% on the day, with Nvidia down 2.8% and Advanced Micro Devices off 3%. Intel and Micron both dropped about 6%, while Apple and Meta fell 1.4% and 2.3%, respectively.
Deepening worries about government interference also hung over chipmakers. Citing sources, Reuters said the administration was exploring taking equity stakes in companies such as Intel in exchange for CHIPS Act grants, following revenue-sharing agreements with Nvidia and AMD announced earlier this month.
At 10:04 a.m. ET, the Dow shed 0.04%, the S&P 500 lost 0.62%, and the Nasdaq slipped 1.28%, Reuters noted. Tuesday’s session had already marked the worst for the S&P 500 and Nasdaq in more than two weeks amid similar selling.
Market breadth and upcoming catalysts
Market breadth was mixed: advancing issues led decliners by a 1.04-to-1 ratio on the NYSE, while decliners outnumbered advancers by 1.61-to-1 on the Nasdaq. The S&P 500 recorded 20 new 52-week highs and no new lows; the Nasdaq posted 17 new highs and 75 new lows.
Fed watch, retail earnings, and tariffs in focus
Minutes from the Fed’s July meeting were due at 2:00 p.m. ET and were expected to set the tone ahead of the central bank’s annual conference in Jackson Hole from August 21 to 23. Chair Jerome Powell is slated to speak Friday, with remarks from Governor Christopher Waller and Atlanta Fed President Raphael Bostic expected later Wednesday. Investors also monitored allegations involving Fed Governor Lisa Cook.
Retail earnings added to the cautious mood. Target plunged 8.2% after naming a new CEO and retaining annual forecasts that were lowered in May due to weak discretionary demand. Estee Lauder fell 2.5% after tariff-related headwinds weighed on its profit outlook, Reuters reported.
On trade, the Commerce Department imposed 50% import levies on more than 400 derivative steel and aluminum products. Consumer sentiment has been dented by concerns that tariffs could lift prices, adding another headwind as markets await clarity on monetary policy and corporate demand—particularly for artificial intelligence—ahead of Nvidia’s results on Aug. 27.
