20.08.202513:35:22UTC+00Tech Extends Weight on US Stocks

U.S. stocks displayed mixed results for the second consecutive session on Wednesday, as investors evaluated the sustainability of the artificial intelligence-driven rally, the earnings reports from retailers, and the interest rate outlook. The Dow Jones Industrial Average increased by 100 points, whereas the S&P 500 and Nasdaq 100 decreased by 0.3% and 0.5%, respectively. This decline was led by the tech sector, which continued its sharp downturn from the prior session. Among the "Magnificent 7" companies, further declines were observed due to concerns over possibly overstretched valuations—supported by research indicating that many AI firms may not achieve profitability. Notably, Nvidia, Meta, and Alphabet experienced losses of over 1%. In the retail sector, earnings results were varied. Target's shares dropped by 10% following the announcement of a new CEO, despite surpassing earnings expectations, and Estee Lauder saw a 4% loss due to a cautious forecast. Conversely, TJX and Lowe's saw their shares rise by 7% and 3%, respectively, post-results announcements. Walmart is set to report its earnings tomorrow. Meanwhile, the Federal Open Market Committee (FOMC) minutes are anticipated to reveal how policymakers are balancing labor market slowdowns against persistent inflation pressures.