Wall Street wobbled on Tuesday as the Nasdaq and S&P 500 closed lower, weighed down by losses in big tech ahead of this week’s closely watched Federal Reserve symposium in Jackson Hole, Wyoming.

The Nasdaq Composite fell 1.46% (–315 points) to 21,314.95, its sharpest drop in weeks, while the S&P 500 slipped 0.59% to 6,411.37. The Dow Jones Industrial Average bucked the trend, edging up just 10 points to 44,922, briefly touching a record high thanks to a boost from Home Depot.

Markets are bracing for Fed chair Jerome Powell’s speech later this week, which could offer clues on whether the central bank intends to stay hawkish or lean toward rate cuts. Futures markets currently expect two quarter-point cuts this year, with the first likely in September, according to LSEG data.

“It seems like folks are hedging a little going into Jackson Hole, thinking Powell might be more hawkish than markets currently appreciate,” said James Cox of Harris Financial Group.

Tech stocks bore the brunt of the selloff. Nvidia slid 3.5%, its steepest fall in nearly four months, while other members of the “Magnificent Seven” also declined. Sentiment was further shaken after OpenAI CEO Sam Altman warned that AI stocks are in a bubble during an interview last week.

Still, not all sectors struggled. Six of the S&P 500’s 11 sectors gained, led by real estate (up 1.8%) on stronger housing data. But technology and communications services dropped 1.9% and 1.2%, respectively, dragging the wider market lower given their heavy weighting in the indices.

Individual movers also grabbed headlines.

• Intel jumped 7% after Japan’s SoftBank invested $2 billion.
• Palo Alto Networks rose 3% on upbeat revenue guidance.
• Home Depot gained 3.2% despite missing earnings estimates, as it reaffirmed its full-year forecast.
• Lowe’s rose 2.2% ahead of earnings from big-box rivals Walmart and Target later this week.

Retail remains in focus as investors gauge how US consumers are handling persistent tariffs and economic uncertainty heading into the holiday season.

Despite Tuesday’s pullback, analysts say markets remain near record levels, though expectations are now tempered. A Reuters poll this week forecast the S&P 500 ending 2025 at 6,300 points, slightly below its current levels, citing worries about tariffs, consumer demand, and Fed policy.

For now, all eyes are on Jackson Hole. Investors will be listening closely to Powell — any signal of caution could reignite optimism for rate cuts, while a hawkish tone may keep pressure on the tech-heavy Nasdaq.