Stocks Decline Ahead of Fed Meeting, MongoDB, Asana, Snowflake Shares Fall

Several tech stocks, including Yext, Sprout Social, Unity, Upstart, and AppLovin, plummeted in the morning session as investors took profits ahead of the Federal Reserve's Jackson Hole symposium. The sell-off was attributed to a significant decline in megacap tech and chipmaker shares, such as Nvidia and Advanced Micro Devices. The market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Several tech stocks, including Yext, Sprout Social, Unity, Upstart, and AppLovin, experienced significant declines in the morning session on July 2, 2025, as investors took profits ahead of the Federal Reserve's Jackson Hole symposium. The sell-off was primarily driven by a notable drop in megacap tech and chipmaker shares such as Nvidia and Advanced Micro Devices.

The Nasdaq and S&P 500 indices dipped on Tuesday, with the Nasdaq Composite losing 313.83 points or 1.45% to close at 21,315.95 points. The S&P 500 (.SPX) lost 37.62 points, or 0.58%, to end at 6,411.53 points. The Dow Jones Industrial Average (.DJI) rose by 10.82 points, or 0.02%, to 44,922.64 points [1].

Investors are closely watching the Jackson Hole symposium, scheduled for August 21-23, where Federal Reserve Chair Jerome Powell will provide insights into the central bank's outlook on the economy and monetary policy. The symposium is expected to influence market sentiment and potentially impact interest rates. "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, managing partner at Harris Financial Group [1].

The sell-off in tech stocks was also influenced by geopolitical concerns, including the ongoing war in Ukraine and the potential impact of U.S. tariffs on the economy. Additionally, investors are cautious about AI-related stocks following OpenAI's CEO Sam Altman's comments about a potential bubble in the sector [1].

Despite the overall market volatility, some sectors performed well. The real estate sector of the S&P 500 rose, helped by better-than-expected housing data. Home Depot (HD.N) and Lowe's (LOW.N) also gained, with Home Depot rising despite missing quarterly results estimates. Earnings from Lowe's and big-box retailers Walmart (WMT.N) and Target (TGT.N) are now in focus as investors await more insight into the health of the American consumer [1].

Intel (INTC.O) jumped after receiving a $2 billion capital injection from SoftBank Group (9984.T), while Palo Alto Networks (PANW.O) rose after forecasting strong fiscal 2026 revenue and profit above estimates. Nvidia (NVDA.O), however, is now the most under-owned megacap tech stock according to Morgan Stanley’s analysis of second-quarter 13F filings, with a gap between its institutional ownership and its S&P 500 weighting widening by 92 basis points in the quarter [3].

The market's overreaction to news and the resulting big price drops can present opportunities for investors to buy high-quality stocks. However, it is essential to remain cautious and conduct thorough research before making investment decisions.

References:
[1] https://www.reuters.com/business/nasdaq-sp-end-lower-jackson-hole-jitters-hit-tech-stocks-2025-08-19/
[2] https://finance.yahoo.com/news/morning-bid-caution-ukraine-eyes-103823582.html
[3] https://www.investing.com/news/stock-market-news/nvidia-is-now-the-most-underowned-megacap-tech-stock-4199389