The Nasdaq tumbled on Tuesday, led by losses in megacap stocks like Nvidia, which fell 3.5% for its biggest drop in nearly four months. The slide follows a rally in the tech sector for much of the year and is driven by investor concerns over the Federal Reserve’s interest rate outlook at the upcoming Jackson Hole symposium.
Federal Reserve Chair Jerome Powell’s comments on the economy and monetary policy will be closely watched, with some analysts predicting two rate cuts this year worth 25 basis points each. Additionally, concerns about AI-related stocks have resurfaced after OpenAI’s CEO Sam Altman said they are in a bubble.
Despite tech sector losses, six of the S&P 500 sectors rose, led by real estate, which gained 1.8% due to better-than-expected housing data. The blue-chip Dow briefly hit a record high on Tuesday, aided by Home Depot’s shares after the retailer kept its annual forecasts intact.
Home Depot rose 3.17%, while Intel jumped 7% after receiving a $2 billion capital injection from SoftBank Group. Palo Alto Networks also rose 3.06%. However, Medtronic lost 3.13% after announcing it would add two new directors to its board.
The Dow Jones Industrial Average rose 10.45 points, while the S&P 500 fell 0.59%, and the Nasdaq Composite slid 1.46%.
Source: https://www.reuters.com/business/nasdaq-tumbles-jackson-hole-jitters-hit-tech-stocks-2025-08-19