Tech Stocks Slide as Investors Await Federal Reserve Signals

NEW YORK, NY — U.S. stocks fell Tuesday, led by a decline in major technology companies. This drop comes as investors await upcoming retail earnings reports and a key speech from Federal Reserve Chair Jerome Powell later this week.

The benchmark S&P 500 and the tech-heavy Nasdaq Composite declined 0.6% and 1.5%, respectively, while the Dow Jones Industrial Average closed fractionally higher after reaching an all-time high earlier in the session. The major indexes have shown volatility after two weeks of gains that lifted stocks to record levels.

Investors are particularly focused on the annual Jackson Hole Symposium, where central bankers from around the world gather. Many are hoping for hints about a potential cut to the Fed’s benchmark interest rate at the September meeting, especially after the Fed kept rates unchanged last month due to uncertainty surrounding inflation data.

In the meantime, earnings reports from major retailers, including Home Depot, Target, and Lowe’s, are set to be released this week. Home Depot shares rose 3% after the home-improvement giant confirmed its profit outlook. Rival Lowe’s will report its earnings Wednesday, with Target and TJX, the parent company of TJ Maxx, also on the calendar.

Technology stocks bore the brunt of the day’s decline. Nvidia and Broadcom both saw their shares drop 3.5%, with Meta Platforms and Tesla falling approximately 2%. Apple and Alphabet also reported small losses of less than 1%.

Among the notable underperformers was Palantir, which tumbled 9%, raising concerns about its valuation after a strong year. Intel, on the other hand, gained 7% after Japan’s SoftBank Group announced a $2 billion investment in the company.

In the cryptocurrency space, stocks related to Bitcoin were under pressure as the price of Bitcoin fell to $113,100 in late afternoon trading, following a record high of $124,500 last week. Strategy shares plummeted more than 7%, while Coinbase Global dropped nearly 6%.

The yield on the 10-year Treasury note decreased to 4.31%, leading to a slight rise in the U.S. dollar index, which climbed to 98.26. Meanwhile, crude oil prices fell 1.4% to $62.50 per barrel.

The market’s mixed performance reflects ongoing investor uncertainty regarding economic conditions and potential shifts in monetary policy ahead of Powell’s highly anticipated speech.