The S&P 500 pulled back on Tuesday as losses in Nvidia and a broad decline in technology stocks dragged the market lower. The benchmark index fell 0.59% to close at 6,411.37, while the Nasdaq Composite dropped 1.46% to 21,314.95. The Dow Jones Industrial Average managed to add 10 points, or 0.02%, to finish at 44,922.27 after touching a fresh intraday record, lifted by strength in Home Depot.
Tech retreat hits chipmakers and software
Chipmakers led the downturn. Nvidia lost 3.5%, while Advanced Micro Devices and Broadcom dropped 5.4% and 3.6% respectively. Software firm Palantir tumbled more than 9%, making it the weakest performer in the S&P 500. Tesla, Meta Platforms and Netflix also traded lower. Intel was a rare bright spot, surging 7%, and cybersecurity giant Palo Alto gained 3.1%.
Retail earnings in focus
Home Depot rose 3% after holding its full-year outlook, despite missing second-quarter estimates. Investors now look ahead to results from Lowe’s, Walmart and Target later this week to gauge consumer strength amid mixed inflation signals and evolving trade policy.
Central banks take centre stage
Markets are also awaiting signals from Federal Reserve Chair Jerome Powell, who is due to speak at the central bank’s annual Jackson Hole symposium on Friday. Fed funds futures are pricing in an 85% chance of a quarter-point cut in September. Stephen Schwartz of Pioneer Financial said Powell’s remarks could mark an inflection point, with investors already beginning to price in 2026 earnings on the expectation of lower rates and clearer tariff policy.
Australia outlook
The SPI 200 futures point up 20 points, or 0.2%, to 8,875. Key results due Wednesday include Santos, James Hardie, Stockland and Magellan Financial.
