Wall Street's summer calm cracked as a selloff in big tech led to major equity gauges going lower, highlighting the US market's narrow reliance on a handful of growth giants.
The Nasdaq 100 declined 1.4% - its second-worst fall since April's tariff surprise – led by a rout in Nvidia.
That pressure overwhelmed gains in over 350 shares in the S&P 500, revealing the fragility of an index supported by megacaps. Home Depot's earnings raised big-box retailers, while Intel jumped as the US is ironing out details of a deal to take a 10% stake in the chipmaker.
Treasuries climbed ahead of Powell's Jackson Hole speech on Friday, with traders firming up bets on a September cut.
10-Yr yields declined 3 BPS to 4.30%.
S&P Global Ratings said revenues from tariffs will help soften the blow to the US's fiscal health from tax cuts, allowing it to preserve its credit grade.
The crypto world joined a decline in risky assets.
Traders are waiting to see if Fed's Powell confirms the market pricing - or pushes back with a reminder that new data arriving before the next meeting could alter the picture.
They're also looking for hints about the longer-run trajectory of Fed cuts into next year.
Source : Financial Juice
