Nasdaq, S&P 500 Fall on Tech Selloff Ahead of Jackson Hole Symposium

The Nasdaq and S&P 500 indices fell on Tuesday due to declines in major tech stocks such as Nvidia, Microsoft, and Meta Platforms, as investors anticipate Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium for clues on future interest rate policies. Market participants are hedging bets, fearing Powell may adopt a more hawkish stance than expected, despite futures indicating two potential 25-basis-point rate cuts later this year beginning in September. The drop in tech stocks also reflected profit-taking and rotation into other sectors, with the real estate sector gaining amid strong housing data. Concerns about an AI bubble were heightened after OpenAI CEO Sam Altman described the AI market as overvalued, contributing to investor caution. Despite the dip, the Dow Jones Industrial Average remained mostly flat, and a Reuters poll projects the S&P 500 will end 2025 slightly below current near-record levels, amid uncertainties including the economic effects of President Donald Trump's global tariffs and anticipated Fed rate actions. Investors are also awaiting upcoming earnings reports from major retailers for further insight into consumer health and tariff impacts on holiday sales.