US and global markets lost their footing as Big Tech dragged down indexes and investors braced for policy signals from the Federal Reserve. The Nasdaq slid over 1.4% after chipmakers like Nvidia (-3.5%), AMD (-5.4%), and Palantir (-9%) stumbled, dragging the S&P 500 off recent highs. Meanwhile, Home Depot defied the gloom, bouncing on surprisingly resilient sales.
Why are investors so jumpy? Two big reasons:
- Tariff anxiety: New US metal tariffs are setting up fresh cost pressures across supply chains
- Fed uncertainty: All eyes are on Friday’s Jackson Hole speech, with only an 85% chance of a September rate cut now priced in—down from near certainty just a week ago (see why Powell's words matter)
This rotation out of overbought tech and into more defensive sectors is a textbook "pause for breath"—but with stock valuations stretched, many strategists warn that a hawkish Fed or weak data could trigger a sharper pullback into autumn. Crypto assets echoed the caution, sliding as the risk-off tone intensified (read the crypto angle).
