Tech Stocks Tumble as Fed's Jackson Hole Symposium Anticipation Grows

The Nasdaq and S&P 500 saw declines amid investor caution ahead of Federal Reserve Chair Jerome Powell's upcoming speech at Jackson Hole. Tech stocks, including Nvidia and Microsoft, dropped as investors rotated into other sectors. Meanwhile, AI-related stocks face scrutiny following a bubble warning by OpenAI’s CEO.

The Nasdaq and S&P 500 slipped on Tuesday, affected by a downturn in tech stocks, as investors awaited Federal Reserve Chair Jerome Powell's comments on interest rates at the upcoming Jackson Hole symposium.

Despite rising earlier this year, tech giants like Nvidia and Microsoft saw declines. The Federal Reserve's annual symposium in Jackson Hole will witness Powell's speech between August 21-23, where market players will search for hints on the central bank's economic outlook.

Market analyst James Cox suggests investors are hedging against potentially hawkish remarks from Powell. Despite notable tech sector losses, the real estate sector, including Home Depot and Lowe's, showed resilience, anticipating insights on American consumer trends.

(With inputs from agencies.)