Tech Stocks Fall Amid Fed Rate Cut Expectations, Treasury Yields Drop

US stock markets declined notably on Tuesday, led by a significant sell-off in major technology stocks, including Nvidia and other big tech companies, as investors awaited Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium. The tech-heavy Nasdaq Composite fell over 1%, with semiconductor and chip-related stocks also experiencing steep losses amid uncertainty about demand and potential tariff impacts. Meanwhile, defensive sectors such as healthcare and consumer staples saw modest gains, reflecting investor caution and a shift toward safer assets. Treasury yields fell as markets priced in a likely Federal Reserve interest rate cut in September, though some strategists warn of risks if Powell's remarks do not meet dovish expectations. The Commerce Secretary confirmed discussions about a possible US government stake in Intel, coinciding with SoftBank's $2 billion investment into the company, highlighting government interest in semiconductor industry support. Investors are closely monitoring upcoming corporate earnings and economic data for signals on consumer trends and the broader economic outlook amid ongoing tariff and inflation concerns.