Tech stocks remained under pressure after leading Wall Street lower, with the Nasdaq down 1.4% and the S&P 500 slipping 0.6%. Chipmakers posted widespread losses: Nvidia slid 3.5%, AMD fell more than 5%, Broadcom lost over 3%, and Palantir plunged 9%. Investor caution intensified ahead of the Federal Reserve’s annual Jackson Hole symposium and Chair Jerome Powell’s speech, while markets still price in two quarter-point cuts this year. AI-related stock valuations drew scrutiny amid warnings of a bubble. Corporate developments provided support, including Intel’s surge on a USD 2 billion SoftBank investment. Officials’ talk of equity stakes in chipmakers raised prospects of state-backed support and concerns about intervention.
Tech stocks could remain under pressure after they led Wall Street lower on Tuesday, with the Nasdaq dropping 1.4% and the S&P 500 slipping 0.6%. Losses were widespread among chipmakers, where Nvidia slid 3.5%, AMD fell more than 5%, and Broadcom lost more than 3%. Palantir was the weakest S&P 500 performer, plunging 9%. The selloff reflected investor caution ahead of the Federal Reserve's annual Jackson Hole symposium, where Chair Jerome Powell is due to speak on Friday.
Markets still price in two quarter-point cuts this year, the first expected in September. A more hawkish tone could weigh further on equities. AI-related stock valuations also drew scrutiny after their recent gains. OpenAI's Sam Altman warned of a bubble, reflecting the cautious sentiment. Still, corporate news provided pockets of support as Intel surged on a USD 2 billion SoftBank investment.
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