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S&P 500 closes lower as tech stocks tumble
US stocks closed mixed on Tuesday, August 19, after a broad decline in tech stocks weighed on the broader market.
The Dow Jones Industrial Average rose 10 points, or 0.02%, while the S&P 500 fell about 0.6%, and the Nasdaq Composite fell 1.6%.
Shares of tech giants and major chipmakers declined during the session. Nvidia shares lost nearly 3.5%, while Advanced Micro Devices and Broadcom shares fell about 5.5% and 3.6%, respectively. Palantir shares fell more than 9.5%. Other major tech stocks, such as Tesla, Meta Platforms, and Netflix, also came under pressure.
"The AI sector may not be recovering, but it could be on the mend," said Jason Bronchetti, chief investment officer at Lincoln Financial. "After the Nasdaq climbed more than 40% since April, a pause is historically normal as the market recalibrates based on the latest economic data and anticipated Federal Reserve policy," according to CNBC.
Bronchetti added, "As capital shifts toward companies in more sectors that demonstrate the potential to apply AI to boost margins and efficiencies, potential turnover and broader participation could support more sustainable progress, though near-term volatility is likely."
Shares of Home Depot rose 3.7% after the company maintained its full-year outlook. This came despite the company's second-quarter earnings falling short of expectations. Lowe's, Walmart, and Target are expected to release their earnings results later this week. Investors are awaiting these reports for clues on consumer performance amid mixed inflation expectations and developments in US trade policy.
Wall Street is also looking for clues from the Federal Reserve Chairman regarding what will happen at the central bank's remaining monetary policy meetings this year.
