Tech Stocks Tumble as Investors Await Federal Reserve Insights

The Nasdaq and S&P 500 experienced declines on Tuesday, led by losses in technology stocks, as investors braced for Federal Reserve Chair Jerome Powell's remarks at an important conference later in the week. The tech-heavy Nasdaq fell as major companies, including Nvidia, witnessed significant drops.

The upcoming Federal Reserve symposium at Jackson Hole, Wyoming, scheduled from August 21 to 23, has markets on edge. Powell's statements are expected to offer insights into the central bank's economic and monetary strategy. Investors speculate Powell might adopt a more hawkish stance than anticipated, with potential rate cuts looming.

Adding to the economic uncertainty, OpenAI's CEO Sam Altman highlighted concerns about a potential AI stock bubble. Meanwhile, sectors including real estate showed gains, contrasting with technology's downturn. Economic players continue to exhibit caution, awaiting further signals of consumer spending and tariff impacts.

(With inputs from agencies.)