Wall Street Slows Ahead of Powell's Speech

US stock markets closed mixed on Tuesday as investors reduced exposure to major tech names while awaiting a crucial statement from Federal Reserve Chair Jerome Powell. His upcoming remarks at the annual Jackson Hole symposium later this week are expected to shed light on the Fed's future approach to interest rates.

Tech Stocks Under Pressure

Technology shares led the decline, with Nvidia tumbling 3.5 percent — its steepest drop in nearly four months. After months of strong gains, mega-cap stocks showed signs of cooling, sparking a wave of profit-taking across the sector.

Spotlight on Jackson Hole

The key event of the week will be the gathering of central bankers and economists in Jackson Hole, Wyoming, running from August 21 to 23. Markets are on edge, analyzing every possible hint Powell may offer about the Fed's economic outlook and monetary policy trajectory.

AI Bubble Concerns

Investor sentiment was further unsettled by comments from OpenAI CEO Sam Altman. In an interview with The Verge, he suggested that the artificial intelligence sector may already be in a bubble, raising fresh doubts about the sustainability of AI-driven stock rallies.

Market Results

• Dow Jones gained 10.45 points, closing at 44,922.27;
• S&P 500 dropped 37.78 points, ending at 6,411.37;
• Nasdaq Composite slid 314.82 points, finishing at 21,314.95.

Surprising sector winners

Despite overall market pressure, six sectors within the S&P 500 ended the session in positive territory. The real estate segment led the advance with a 1.8 percent gain, fueled by housing market data that exceeded forecasts. By contrast, technology and communication services stocks lost more than 1.9 and 1.2 percent respectively.

Dow flirts with record high

On Tuesday, the Dow Jones Industrial Average briefly touched an all-time peak. The move was supported by a surge in Home Depot shares after the home improvement giant reaffirmed its annual outlook without revising expectations.

Retailers in the spotlight

Home Depot stock climbed 3.17 percent, even in the absence of quarterly earnings guidance. Rival Lowe's advanced 2.18 percent. Market attention this week is firmly on the results from Lowe's, Walmart, and Target, as investors look for fresh insight into the resilience of US consumer spending.

Tech sector surprise

Intel shares jumped around 7 percent after Japanese conglomerate SoftBank announced a two billion dollar investment in the chipmaker. The move sparked optimism about Intel's prospects in a highly competitive industry.

Cybersecurity momentum

Shares of Palo Alto Networks rose more than 3 percent after the company issued guidance for fiscal 2026 that topped Wall Street expectations on both revenue and profit, giving investors renewed confidence in the cybersecurity sector.

Pressure on Medtronic shares

Medtronic stock fell 3.13 percent after the company announced plans to add two new directors to its board. The move followed Elliott Investment Management's purchase of a substantial stake in the medical device maker, signaling stronger influence from the activist investor.

European markets edge lower

The pan-European STOXX 600 index slipped 0.26 percent, while Germany's DAX dropped 0.7 percent. In the UK, the FTSE 100 dipped 0.11 percent after fresh data revealed that nationwide inflation in July hit its highest level in 18 months.

Asia mirrors the downturn

The weakness across Europe echoed losses earlier in Asia. Taiwan's and South Korea's technology benchmarks were among the hardest hit. The MSCI broad Asia-Pacific index, excluding Japan, declined 0.74 percent.

Washington weighs semiconductor investments

According to sources, US Commerce Secretary Howard Lutnick is exploring a plan that would allow the government to acquire equity stakes in Intel and other chipmakers in exchange for grants under the CHIPS Act, designed to accelerate domestic semiconductor manufacturing.

Unconventional tech deals

This approach follows a series of unusual arrangements between Washington and Silicon Valley. Among them is an agreement with Nvidia, permitting sales of its H2O chips to China in return for the US government receiving 15 percent of the revenue from those deals.

Oil prices edge higher

Brent crude futures rose 0.8 percent to 66.32 dollars a barrel, while US benchmark WTI added 0.72 percent, settling at 62.80 dollars.

Spotlight on Jackson Hole

All eyes are now on the Kansas City Federal Reserve's annual symposium, scheduled for August 21–23 in Jackson Hole. The highlight will be Fed Chair Jerome Powell's speech on Friday, where he is expected to outline the economic outlook and the central bank's policy stance.

Rate cut expectations dominate

Markets are focused on Powell's comments regarding short-term interest rates, with traders nearly fully pricing in a rate cut as early as next month.

Dollar gains modestly

Ahead of the meeting, the US dollar firmed slightly, pushing the euro down by 0.06 percent to 1.1639 dollars. The British pound, buoyed by fresh UK inflation data, was last seen steady around 1.3494 dollars.

New Zealand dollar under pressure

The New Zealand dollar fell by more than 1 percent after the central bank cut interest rates as anticipated and signaled further reductions in the coming months, citing both domestic and global growth challenges. It last traded at 0.5829 dollars.

Gold extends gains

Spot gold prices advanced 0.29 percent, climbing to 3324.89 dollars per ounce.