Tech Stocks Tumble Amid Market Jitters Ahead of Fed Symposium
Wall Street's main indexes fell, with technology stocks like Nvidia and AMD sliding as investors reassess high valuations. Concerns over government interference in chip companies and awaited Fed insights from the Jackson Hole symposium added to market caution. Retailers like Target also faced challenges amid tariff-related concerns.
Wall Street's major indexes experienced declines on Wednesday, with the Nasdaq reaching a two-week low. This downturn followed a waning rally in technology stocks, causing investors to exhibit caution ahead of the highly anticipated Federal Reserve's Jackson Hole symposium later this week.
Tech giants such as Nvidia and AMD saw significant declines, shedding 2.8% and 3% respectively, as reports emerged that the Trump administration considered equity stakes in chip companies like Intel in exchange for grants under the CHIPS Act. The S&P 500 technology index fell 1.7% amidst these developments.
In anticipation of key speeches from Fed Chair Jerome Powell and others at the Jackson Hole conference, the market's focus remained on potential monetary policy insights. Meanwhile, Target and Estee Lauder suffered setbacks due to tariff-related issues, adding to the cloud of economic uncertainty.
(With inputs from agencies.)
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