Wall Street mostly declines as tech names pull back from highs
Sign up now: Get ST's newsletters delivered to your inbox
Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 19.
PHOTO: REUTERS
Follow topic:
- Wall Street stocks closed mostly lower on August 19, pressured by tech stock declines despite the Dow's marginal rise.
- Home Depot's report boosted retailers, while investors await Target, Walmart, and Lowes earnings to assess consumer strength, impacted by tariffs.
- Investors await Jerome Powell's remarks on August 22 for clues on potential September rate cuts, pricing in over 80% likelihood of a cut.
AI generated
NEW YORK – Wall Street stocks finished mostly lower on Aug 19, dragged down by tech companies retreating from record highs, while a Home Depot earnings report lifted retailers.
The broad-based S&P 500 Index fell 0.6 per cent to 6,411.37, while the tech-focused Nasdaq Composite Index fell 1.5 per cent to 21,314.95.
The Dow Jones Industrial Average rose a marginal 10.5 points to 44,922.27, pulling back after hitting a record high on the back of Home Depot’s quarterly report.
Shares of the home improvement company rose 3.2 per cent after slightly missing analyst expectations but maintaining its full-year forecast.
Target, Walmart and Lowes report later in the week, with all eyes on potential impacts on consumers from US President Donald Trump’s tariffs.
“The consumer makes up two thirds of the economy and retail earnings give you a good sense of the strength of the consumer,” Mr Adam Sarhan, of 50 Park Investments, said.
Artificial intelligence (AI) chip-maker Nvidia led a slew of tech stocks facing pressure, falling 3.5 per cent, while Advanced Micro Devices dropped 5.4 per cent and software provider Palantir slid over 9 per cent.
Microsoft fell 1.4 per cent.
Shares of Facebook-parent Meta also fell more than 2 per cent after The New York Times reported a major shake-up was forthcoming in its AI division.
“Considerable losses in mega-cap tech names have the S&P 500 and Nasdaq Composite facing pressure,” according to Briefing.com analysts.
Mr Sarhan said that after hitting all time highs last week, “the market is pulling back as investors digest a very big... move up”.
Traders are also anxiously awaiting US Federal Reserve chairman Jerome Powell’s remarks on Aug 22 at the Jackson Hole financial gathering, where he may offer clues as to how recent inflation and jobs data impact decision making on rate cuts in September.
Mr Powell is expected to be “cautious” after economic data “has gotten weaker” since his last remarks, said Mr Sarhan.
Traders currently price in an over 80 per cent likelihood that the Fed will cut, after resisting intense pressure from Mr Trump and holding rates steady since last December.
“Just about everybody is saying that the Fed should cut rates... so now it’s just a matter of when,” added Mr Sarhan.
Policymakers have been cautiously monitoring the effects of Mr Trump’s wide-ranging tariffs on the world’s biggest economy.
The Aug 19 decline followed a tepid session a day earlier, when stocks ended mostly flat as traders awaited the outcome of high-level talks at the White House on Russia’s war in Ukraine. AFP
