US: Wall Street mostly down as tech still under pressure

[TORONTO] US stocks closed mostly lower on Wednesday as the tech sector remained under pressure while investors kept an eye on retail earnings and weighed the prospect of Federal Reserve interest rate cuts.

The broad-based S&P 500 Index slid 0.2 per cent to 6,395.78, while the tech-focused Nasdaq Composite Index declined 0.7 per cent to 21,172.86.

The Dow Jones Industrial Average was flat at 44,938.31.

The tech pullback comes as markets reached a point where many stocks “were overbought,” after soaring to record highs in recent weeks, said Tim Urbanowicz of Innovator Capital Management.

“But we still view the long-term trend (as) intact,” he said.

Among major tech companies, Nvidia shares lost 0.1 per cent while Advanced Micro Devices pulled back 0.8 per cent. Broadcom fell 1.3 per cent.

Investors also digested earnings from retailers Target, which saw a drop in sales, and Lowe’s which beat expectations. Target shares closed more than six per cent down while Lowe’s edged up 0.3 per cent.

Markets have been assessing the health of retailers as they gauge the effects of President Donald Trump’s tariffs on inflation and the broader economy.

Meanwhile, minutes of the Fed’s most recent policy meeting in July also showed that a majority of officials judged that inflation risks outweighed those of employment for now — as they voted to keep interest rates unchanged despite two dissents.

Looking ahead, investors will be scrutinising Fed Chair Jerome Powell’s speech at a central bankers’ gathering on Friday for signs on where rates may be headed next. AFP