Tech shares slid again as investors weighed whether the recent rout marks a brief setback or the start of something bigger, with late-session buying only partly easing the decline. According to Bloomberg, a pullback in major US benchmarks and renewed questions about richly valued names set the tone ahead of key central bank discussions.
Markets wobble as bubble talk resurfaces
US stocks fell on Wednesday, led by technology, before dip buyers trimmed losses late in the session. Bloomberg reports that expensive stocks are “in the early days” of a bubble, according to Oaktree Capital’s Howard Marks, though he isn’t sounding the alarm. Minutes from the Federal Reserve indicated inflation remains the primary concern for policymakers, which weighed on Treasuries’ earlier gains.
High-profile earnings and deals added to the crosscurrents. Baidu’s June-quarter sales fell the most since 2022 amid a weak economy and intensifying AI competition. In the US, Target dropped after another round of soft results that its incoming chief executive urged staff to help reverse. Lowe’s said it would acquire Foundation Building Materials in an $8.8 billion cash deal.
Politics, policy and tech security collide
Political pressure on the Federal Reserve intensified. Former President Donald Trump called for Fed Governor Lisa Cook to resign immediately, citing allegations from an ally related to owner-occupancy mortgage fraud. Cook rejected the demand, saying she wouldn’t be “bullied to step down” over questions raised in a tweet, Bloomberg reported. Global central bankers gathering in Jackson Hole are expected to back Chair Jerome Powell as they convene for the Fed’s annual conference.
Cyber moves and corporate shifts
Microsoft curtailed Chinese companies’ access to early notifications on cybersecurity flaws in its products. The move followed a series of attacks the company attributed to state-sponsored Chinese hackers who exploited SharePoint server weaknesses. Elsewhere, European security discussions advanced as Italy proposed a “NATO-light” plan that would commit allies to decide within 24 hours whether to provide military support to Ukraine if attacked again by Russia, while the Netherlands said it will send two Patriot air-defense systems to Poland to bolster NATO territory protection.
In the background, scrutiny of capital-intensive tech efforts continued. Bloomberg highlighted pressure on SpaceX to demonstrate progress on its Starship program while controlling costs after costly test failures, with internal engineering resources reportedly reshuffled toward the giant rocket. Together, the mix of market jitters, policy uncertainty and security headlines kept risk appetite cautious across sectors.
