Traders work on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., August 12, 2025.
Brendan McDermid | Reuters
The S&P 500 pulled again on Tuesday, weighed down by Nvidia shares and a broad decline in know-how shares.
The broad market S&P 500 misplaced 0.59% and closed at 6,411.37, whereas the Nasdaq Composite fell 1.46% to settle at 21,314.95. The Dow Jones Industrial Average added 10.45 factors, or 0.02%, and ended at 44,922.27. The 30-stock index touched a contemporary file excessive in the course of the session, powered by a pop in Home Depot.
Shares of megacap tech and big-name chipmakers declined. Nvidia shares misplaced 3.5%, whereas Advanced Micro Devices and Broadcom slipped 5.4% and three.6%, respectively. Shares of high-flying software program inventory Palantir dropped greater than 9%, making it the S&P 500’s worst performer. Other main tech-related names resembling Tesla, Meta Platforms and Netflix had been additionally beneath strain.
“The AI trade may not be breaking, but it could be catching its breath. After a 40%+ run for the NASDAQ since April, historically a pause is normal as the market recalibrates around the latest economic data and anticipated Fed policy,” stated Jayson Bronchetti, chief funding officer at Lincoln Financial.
“As capital shifts toward companies across more sectors who demonstrate an ability to apply AI to boost margins and efficiency, potential rotation and wider participation may underpin a more durable advance, though near-term chop is likely,” Bronchetti added.
Nasdaq intraday chart
Home Depot shares rose 3% after the house enchancment large maintained its full-year outlook. To make certain, its second-quarter earnings got here in beneath expectations. Investors await earnings from Lowe’s, Walmart and Target due later this week for perception on how the patron is faring amid a blended inflation outlook and evolving U.S. commerce coverage.
Wall Street can be trying for clues from Federal Reserve Chair Jerome Powell as to what is going to occur on the central financial institution’s remaining coverage conferences this 12 months. Central financial institution officers from across the globe will convene this week in Jackson Hole, Wyoming for the Fed’s annual economic symposium.
The fed funds futures market is indicating an 85% probability for a quarter-point charge lower on the Fed’s subsequent coverage assembly in September, in accordance with CME’s FedWatch tool.
“Friday’s Jackson Hole speech is likely an inflection point for markets as we believe Jerome Powell will signal that rate cuts are likely at the upcoming September meeting,” stated Stephen Schwartz, founding associate of wealth administration agency Pioneer Financial.
“Valuations may even have more room to expand as we move into the back half of 2025 as investors will at that time start to price-in at 2026 earnings, which are expected to improve thanks to the potential for lower interest rates and improved tariff policy clarity,” he added.