U.S. equities closed mixed on Tuesday as a sharp decline in technology shares dragged major indexes lower, while the Dow Jones Industrial Average managed to stay near record territory.
The S&P 500 slipped 0.6% and the Nasdaq Composite tumbled 1.5%, weighed down by losses in mega-cap tech stocks. Meanwhile, the Dow Jones Industrial Average ended slightly higher, finishing less than 100 points away from its first record closing high since December after briefly touching an intraday peak.
Fed in Focus: Jackson Hole Ahead
Markets are bracing for Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole Symposium on Friday. Investors expect Powell to provide fresh signals on whether the central bank could cut interest rates at its September meeting. While the Fed held rates steady last month, policymakers indicated they wanted more clarity on the inflationary effects of tariffs. Recent inflation data has been mixed, leaving markets uncertain about the timing of the next policy move.
Retail Earnings on Deck
A heavy earnings calendar from top U.S. retailers is also shaping sentiment. Home Depot rose about 3% after reaffirming its guidance and noting improving demand, though the stock closed well off session highs. Lowe’s, Target, and TJX are set to report tomorrow, with Walmart following on Thursday.
Tech Stocks Lead Declines
Large-cap technology companies weighed heavily on markets:
- Nvidia and Broadcom dropped 3.5% each.
- Meta and Tesla fell about 2%.
- Microsoft and Amazon slipped around 1.5%.
- Apple and Alphabet eased less than 1%.
Among smaller players, Palantir sank 9%, while AMD and Super Micro Computer lost over 5%.
In contrast, Intel surged 7% after SoftBank Group announced a $2 billion investment in the U.S. chipmaker, boosting hopes for a turnaround. Palo Alto Networks also gained 3% following stronger-than-expected earnings and an upbeat outlook.
Crypto and Commodities
Crypto-linked equities mirrored weakness in digital assets. MicroStrategy plunged more than 7%, while Coinbase shed nearly 6% as Bitcoin slipped to $113,100, down from yesterday’s $117,000. The token remains below last week’s record high of $124,500.
In commodities, West Texas Intermediate crude fell 1.4% to $62.50 per barrel, retreating to early-June levels. Gold futures slid 0.6% to $3,360 per ounce.
Bonds and Currency Moves
The 10-year Treasury yield eased to 4.31% from 4.34% the previous day, though still above last week’s 4.20% low. The U.S. dollar index inched up 0.1% to 98.26, marking its second consecutive daily gain after hitting a three-week low last Friday.