United States benchmarks ended mixed on Wednesday (Thursday AEST) as a continued sell-off in technology names weighed, while retail earnings and Federal Reserve meeting minutes added to investor caution.
The Dow Jones Industrial Average bucked the trend, inching up 16 points or 0.04% to 44,938.3, while the S&P 500 slipped 15.6 points or 0.2% to close at 6,395.78, and the Nasdaq Composite dropped 142.1 points or 0.7% to 21,172.9.
Technology stocks remained under pressure, with investors taking profits from high-valuation names tied to the artificial intelligence trade.
Nvidia slipped 0.1%, Advanced Micro Devices lost 0.8%, Broadcom fell 1.3%, Palantir dropped 1.1%, and Intel shed 7%.
Among mega-cap tech companies, Apple fell 2%, Amazon lost 1.8%, Alphabet shed 1.1%, and Meta Platforms retreated 0.5%.
Earnings updates added to the day’s mixed tone. Target sank 6.3% after reporting another drop in sales and naming a new chief executive set to begin on 1 February.
By contrast, Lowe’s finished 0.3% higher after its earnings surpassed market expectations.
Investors also absorbed the Federal Reserve’s July meeting minutes, which revealed policymakers’ concerns about both the labour market and inflation.
While most officials agreed it was premature to cut rates, two voting members - Christopher Waller and Michelle Bowman - dissented, the first such dual opposition since 1993.
“Participants generally pointed to risks to both sides of the Committee’s dual mandate, emphasizing upside risk to inflation and downside risk to employment,” the minutes stated. A majority viewed inflation as the more pressing concern, though some officials highlighted employment risks.
Attention now turns to Fed Chair Jerome Powell, who is scheduled to speak later in the week at the Fed's annual Jackson Hole Symposium, with markets eager for signals on the path of monetary policy.
According to CME Group FedWatch Tool, traders currently assign an 81.9% probability that the Fed will cut rates at its September meeting.
In bond markets, Treasury yields eased, with the 10-year falling 0.4% to 4.291% and the 2-year dipping 0.1% to 3.752%.
