Tech Stocks Tumble: Wall Street Struggles with Market Volatility
Wall Street faced its second consecutive day of declines as tech stock volatility continued and investors awaited central bankers' meeting. The S&P 500 and Nasdaq Composite fell due to risk aversion and President Trump's potential influence on the tech sector. Focus turns to the Jackson Hole symposium for economic insights.
Shares on Wall Street fell for a second consecutive day on Wednesday, reflecting ongoing weakness in the tech sector. The S&P 500 declined by 0.8%, while the tech-dominated Nasdaq Composite dropped nearly 1.5% in early trading. Market attention remains fixed on an upcoming meeting of central bankers, affecting currency and rates traders.
Analysts cite several factors for the decline in tech stocks, including high valuations and risk aversion among investors. Additionally, President Donald Trump's possible influence over the sector has attracted investor scrutiny. Reports suggest U.S. Commerce Secretary Howard Lutnick is investigating government equity stakes in major chip companies like Intel.
The central focus now shifts to the Kansas City Federal Reserve's Jackson Hole symposium, where Fed Chair Jerome Powell will discuss the economic outlook and policy framework. Markets will scrutinize Powell's comments on rates, especially with a rate cut expected shortly. Meanwhile, European stocks closed positively, with Britain's FTSE 100 reaching new highs.
(With inputs from agencies.)
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