Investors Navigate Tariff Fears, Fed Uncertainty as Tech Stocks Tumble

The Nasdaq Composite fell more than 1% on Tuesday, extending a weak performance as investors weighed the outlook for the U.S. economy, particularly in the context of impending tariff measures and uncertainty around the Federal Reserve's upcoming monetary policy decisions. The tech-heavy index declined over 1.4%, dragged down by significant losses in high-profile stocks such as Palantir and Advanced Micro Devices [1]. Meanwhile, the broader market showed a mixed tone, with the Dow Jones Industrial Average hovering near flat territory and the S&P 500 dropping 0.6% [1].

The decline in the Nasdaq came as major retailers like Home Depot reported earnings that missed expectations, signaling potential challenges as the housing market remains subdued. However, Home Depot's shares rose on Tuesday following the release of its second-quarter results, which showed a return to consistent same-store sales growth in the U.S. [1]. The company's performance will be closely watched alongside earnings from Target and Walmart later in the week, which could offer more clarity on consumer spending behavior amid the ongoing tariff pressures [1].

In the technology sector, Intel saw a notable boost after Japanese conglomerate SoftBank announced a $2 billion investment into the chipmaker. The move represents a significant injection of capital as Intel navigates a broader industry shift toward artificial intelligence and semiconductor innovation. The investment came days after a Bloomberg report suggested that the Trump administration may be considering a stake in the company as part of its broader industrial strategy [1].

Investors are also preparing for the Federal Reserve's key address by Chair Jerome Powell at the Jackson Hole symposium on Friday. The speech is expected to provide critical clues about the central bank's stance on interest rates, particularly as inflation remains stubborn and the labor market shows signs of cooling. With the September policy meeting approaching, market participants are closely monitoring how the Fed will balance the risks of tightening too much or too little [1].

Beyond the domestic economic outlook, global political developments added to the sense of unease. U.S. President Trump has been pushing for renewed dialogue between Ukraine and Russia, recently urging Russian President Vladimir Putin to meet with Ukrainian President Volodymyr Zelensky. European leaders have shown support for Zelensky, but the geopolitical uncertainty has kept markets cautious, with attention turning to how the situation might evolve in the coming weeks [1].

Source: [1] Stock market today: Live updates (https://www.cnbc.com/2025/08/18/stock-market-today-live-updates.html) [2] Dow, S&P 500, Nasdaq trade mixed as Home Depot leads out ... (https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-trade-mixed-as-home-depot-leads-out-retail-earnings-231504495.html)