Dow Jones Forecast: Home Depot Drives Blue Chip Dow Higher While Nasdaq Tech Stocks Slip

Dow Holds Near Record as Nasdaq Declines on Tech Weakness

The Dow Jones Industrial Average edged higher on Tuesday, shortly after the opening, supported by strong gains in Home Depot, while the Nasdaq slipped sharply as technology stocks came under pressure. Traders kept attention on corporate earnings and upcoming Federal Reserve commentary from Jackson Hole, a key event that could shape expectations on rate cuts.

What Lifted the Dow?

The Dow added 0.47% to 45,121.22 as Home Depot surged 4.6% after maintaining its annual forecast despite weaker-than-expected quarterly results. Lowe’s followed with a 2.7% gain, helping lift retail sentiment ahead of earnings from Walmart and Target later this week. With consumer spending accounting for the bulk of U.S. growth, these reports will be watched closely to gauge the impact of tariffs and higher borrowing costs.

Why Did the Nasdaq Struggle?

The Nasdaq Composite dropped 0.91% to 21,433.60 as technology stocks weighed heavily. Intel, however, stood out, jumping 10% to its highest level since March after a $2 billion capital injection from Japan’s SoftBank.

Palo Alto Networks gained 4.8% following a strong long-term revenue forecast, but these advances were outweighed by broader tech weakness after a nearly 15% rally earlier this year.

Which S&P 500 Sectors Moved the Market?

Eight of the 11 S&P 500 sectors advanced, led by real estate with a 1.2% gain on stronger housing data. Technology lagged the most, dragging on both the S&P 500 and the Nasdaq. The S&P 500 slipped 0.18% to 6,437.68, underscoring the market’s split between consumer-related gains and pressure in tech.

How Are Rate Cut Expectations Evolving?

Traders also tracked remarks from Fed Vice Chair for Supervision Michelle Bowman, who has expressed support for at least three rate cuts this year. Futures markets, however, price in two 25-basis-point cuts, with the first expected in September.

Investors are waiting for Powell’s speech at Jackson Hole later this week for signals on inflation and policy direction, particularly as tariffs and consumer demand remain pressure points.

What Lies Ahead for Traders?

Market strength in the Dow shows resilience in consumer-facing names, but Nasdaq weakness highlights profit-taking in tech after strong year-to-date gains. The focus now shifts to Jackson Hole for monetary policy cues and to Walmart and Target earnings for confirmation on consumer spending trends. These drivers will set the tone for whether the Nasdaq can regain momentum or if defensive sectors continue to lead.

More Information in our Economic Calendar.