Technology Stocks Drag Market Ahead of Fed Chair's Speech

Pre-market trading saw a decline in the overall market, with technology stocks weighing heavily on the indices. Investors are eagerly awaiting the speech by the Federal Reserve Chair, who is expected to provide insights into the interest rate path during the annual economic symposium in Jackson Hole, Wyoming. The market is particularly focused on the Chair's views on the labor market and inflation, as well as any signals regarding a potential rate cut in September.

The recent minutes from the Federal Reserve's July meeting indicated concerns among policymakers about the labor market and inflation. While most members agreed that it was too early to cut rates, two members dissented, voting against maintaining the current rates. This marked the first time since 1993 that two members of the Federal Open Market Committee (FOMC) voted against a decision.

Market analysts are divided on the likelihood of a rate cut in September. Some believe that the Chair may hint at a rate cut, given the recent weak employment data and slowing wage growth. Others are more cautious, suggesting that the Chair may wait for more data before making a decision. The market is also watching for any changes to the Fed's policy framework, which could signal a shift in its approach to managing inflation and employment.

Technology stocks have been under pressure this week, with investors taking profits from high-performing stocks such as NVIDIA, Palantir, and Meta. The sell-off in technology stocks has contributed to the overall market decline, as investors reassess their positions ahead of the Jackson Hole symposium. Some analysts believe that the sell-off in technology stocks may continue, as investors become more cautious about the sector's prospects.

Investors are also keeping an eye on other key stocks, including Walmart, which is set to release its quarterly earnings report. The company's stock has been volatile in recent weeks, as investors weigh the impact of inflation and changing consumer behavior on its business. Other stocks to watch include Miniso, which reported better-than-expected second-quarter earnings, and CoreWeave, which saw a surge in its stock price after a report that it holds a significant stake in the company.