Tech Stocks Stumble: Nvidia Leads Nasdaq Decline as Markets Eye Fed’s Jackson Hole

Wall Street experienced a notable pullback on August 19, 2025, with the Dow retreating from its record high and the Nasdaq shedding 1%, primarily driven by a decline in major technology stocks. Chipmaker Nvidia saw its shares drop nearly 3.5%, while Advanced Micro Devices and Broadcom also slipped significantly. Other tech giants, including Palantir, Tesla, Meta Platforms, and Netflix, were under pressure, with Palantir being the S&P 500’s worst performer, losing over 9.5%.

Analysts suggest the recent tech downturn, often referred to as the “AI trade,” might simply be “catching its breath” after a substantial run. Jayson Bronchetti of Lincoln Financial noted that a pause is historically normal for the Nasdaq after a 40%+ surge since April, allowing the market to recalibrate with new economic data and anticipated Fed policy.

Amid the tech sector’s struggles, Home Depot shares bucked the trend, rising 3.7% after maintaining its full-year outlook despite missing second-quarter earnings expectations. Investors are now keenly awaiting earnings reports from Lowe’s, Walmart, and Target later this week for further insights into consumer health.

Looking ahead, market participants are also focused on the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, set to convene this week. Traders are particularly keen for clues from Fed Chair Jerome Powell regarding the central bank’s future policy, with the fed funds futures market indicating an 83% chance of a quarter-point rate cut at the September meeting. Stephen Schwartz of Pioneer Financial believes Powell’s speech at Jackson Hole could be an “inflection point,” potentially signaling September rate cuts and setting the stage for further market expansion into late 2025 as investors price in improved 2026 earnings.

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