Tech Sell-Off Meets Retail Hope in a Shifting Market Landscape

U.S. stock indices delivered a mixed performance, reflecting varied investor sentiment across sectors and market conditions. The S&P 500 fell by approximately 0.6%, while the tech-heavy Nasdaq Composite dropped roughly 1.5%. In contrast, the Dow Jones Industrial Average narrowly avoided a loss, closing slightly higher [1]. The divergent movements underscored a broader shift in market leadership from tech giants to more economically sensitive sectors, with companies in healthcare, homebuilders, and small-cap stocks gaining traction [1].

The decline in the Nasdaq and S&P 500 was led by steep losses in major tech stocks, including Palantir, Advanced Micro Devices (AMD), and Nvidia. Palantir’s shares plunged nearly 9%, while AMD dropped over 5%. Nvidia also saw a 3.5% decline [1]. This sell-off marked a continuation of recent volatility in the sector, as investors recalibrated expectations amid ongoing inflationary pressures and policy uncertainties [1].

Retailers played a pivotal role in the session, with Home Depot’s performance offering a glimmer of optimism. The company reported second-quarter results that missed Wall Street estimates but retained its full-year outlook. Despite the shortfall, Home Depot’s stock closed up 3%, buoyed by a return to consistent same-store sales growth and signs of thawing in the housing market [1]. Analysts highlighted the broader importance of upcoming earnings from retail giants such as Target and Walmart, which will provide further insight into consumer spending amid shifting trade policies and economic conditions [1].

SoftBank’s $2 billion investment in Intel offered a bright spot for the chipmaker, which has struggled to regain momentum after a prolonged period of decline. The investment marked a significant development in Intel’s turnaround strategy, with funds earmarked for manufacturing transformation and AI ecosystem development [7]. Intel’s stock surged over 11% in response to the news, reversing much of its year-long decline [7]. The investment came amid reports of potential U.S. government participation in the company, with the federal administration considering converting part of the $10.9 billion in subsidies provided under the Chips and Science Act into equity [7].

Investor attention also remained fixed on the Federal Reserve’s upcoming policy decisions, with the Jackson Hole symposium expected to provide critical guidance. Market indicators, including the CME FedWatch tool, suggested an 83% probability of a 25-basis-point rate cut in September [7]. Analysts emphasized the significance of Federal Reserve Chairman Jerome Powell’s speech, noting that it could shape market expectations for the remainder of the year and influence the direction of U.S. monetary policy [7].

In the retail sector, Home Depot’s performance reflected broader consumer behavior amid high interest rates and inflation. While the company reported strong revenue growth of 4.8%, its same-store sales rose by just 1%, falling short of analyst expectations [7]. This trend suggested that U.S. consumers were scaling back on large purchases, a development with potential implications for broader economic activity and consumer-driven industries [7].

Overall, the mixed performance of the major U.S. indices highlighted the complexity of navigating the current market environment. While certain sectors, such as healthcare and cybersecurity, showed resilience, others, particularly tech and retail, faced headwinds. As investors continue to assess economic signals and policy developments, the coming weeks are expected to bring further clarity on the trajectory of the U.S. stock market [7].

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[1] S&P 500, Nasdaq slide as Home Depot leads out retail earnings (https://finance.yahoo.com/news/live/stock-market-today-sp-500-nasdaq-slide-as-home-depot-leads-out-retail-earnings-231504644.html)

[2] S&P 500 closes lower as Nvidia pulls down tech sector ... (https://www.cnbc.com/2025/08/18/stock-market-today-live-updates.html)

[3] Dow Jones – Trusted News & Data (https://www.dowjones.com/)

[4] US Stock Market: Unpacking the Mixed Close and Its ... (https://www.bitget.com/news/detail/12560604918193)

[5] Market Reports from UK, US & EU Stock Markets (https://www.fidelity.co.uk/shares/stock-market-news/market-reports/)

[7] U.S. Stock Market Early Session | The three major indices ... (https://news.futunn.com/en/post/60821151/us-stock-market-early-session-the-three-major-indices-showed)