Nasdaq Falls 1.7% as Nvidia, Palantir, and Intel Drop Ahead of Fed Minutes Release

Nasdaq Drops Mid-Session as Tech Slide Continues Ahead of Fed Minutes

The Nasdaq Composite fell 1.7% by mid-session Wednesday, extending its decline from the previous day as tech stocks continued to face selling pressure. The S&P 500 slipped 0.9%, while the Dow Jones Industrial Average shed 95 points, or 0.2%. Traders were cautious heading into the release of the Federal Reserve’s July meeting minutes, while digesting a batch of mixed retail earnings.

Are High-Valued Tech Stocks Running Out of Steam?

Semiconductors and megacap tech names led the pullback. Nvidia slid nearly 3%, while AMD and Broadcom lost more than 3.5% each. Intel and Micron dropped about 6%, with Palantir plunging 7%, making it the worst performer in the S&P 500 this week—down over 17%.

The selling reflects growing concern about stretched valuations following an extended rally in AI-related names. Reports that the U.S. government is considering equity stakes in chipmakers like Intel under the CHIPS Act added to the pressure.

What Are Retail Earnings Telling Traders About Consumer Health?

Target shares fell over 8% after reporting another sales decline and naming a new CEO, set to take over in February. The company reaffirmed its already-lowered guidance from May. In contrast, Lowe’s saw a modest gain after beating earnings estimates. Estee Lauder lost 2.5% after tariff-related concerns prompted a weaker profit forecast. Retail results are being closely watched for signs of consumer demand heading into Q4.

Is the Fed Poised to Shift Course on Rates?

Traders were awaiting the Fed’s July meeting minutes, set to be released at 18:00 GMT, for further insight into policymakers’ thinking. That meeting saw the Fed hold rates steady, though two officials dissented—raising questions about internal divisions.

Fed Chair Jerome Powell’s upcoming remarks at Jackson Hole on Friday are also in focus. The CME FedWatch tool shows markets pricing in an 85% chance of a September rate cut, but any hawkish tone could weigh heavily on growth stocks.

Midday Outlook: Watching the Fed and Nvidia for the Next Catalyst

With major indexes lower heading into the afternoon, investor sentiment remains fragile. Profit-taking in tech, rising yields, and geopolitical uncertainty are all weighing on risk appetite.

Powell’s Jackson Hole speech and Nvidia’s results on August 27 could be the next key catalysts. Until then, expect choppy trade and defensive positioning, particularly across rate-sensitive and high-valuation sectors.

More Information in our Economic Calendar.