U.S. Stocks End Mixed on Tuesday Amid Tech Sector Pressure

(MENAFN) U.S. equities ended mixed on Tuesday as technology stocks pressured the markets.

The Dow Jones Industrial Average inched up 10.45 points, or 0.02%, settling at 44,922.27. Meanwhile, the S&P 500 dropped 37.78 points, or 0.59%, to 6,411.37, and the Nasdaq Composite plunged 314.82 points, or 1.46%, closing at 21,314.95.

Among the 11 major sectors of the S&P 500, seven advanced. Real estate led gains with a 1.8% increase, followed by consumer staples, which rose 0.99%. Technology and communication services were the weakest performers, declining 1.88% and 1.16%, respectively.

Investor focus centered on retail earnings, with Home Depot releasing second-quarter results that fell slightly short of Wall Street forecasts. Despite this, the company’s shares climbed 3.17% after showing renewed same-store sales growth in the U.S., hinting at a potential housing market rebound.

Looking ahead, Target is scheduled to report earnings Wednesday, with Walmart’s results due Thursday, providing crucial insight into consumer demand as tariffs implemented under the Trump administration continue to impact the economy.

Corey Tarlowe, senior vice president of equity research at Jefferies, noted that Walmart is expected to achieve robust second-quarter sales growth despite facing margin pressures from tariffs, whereas Target’s outlook remains more uncertain but could improve if its results align with forecasts.

Mega-cap technology stocks extended losses, weighing heavily on the overall market. Nvidia and Broadcom fell roughly 3.5% each, Meta Platforms dropped 2%, and Microsoft, Amazon, and Tesla each declined nearly 1.5%. Apple and Alphabet recorded smaller losses.

Jayson Bronchetti, chief investment officer at Lincoln Financial, noted, "The AI trade may not be breaking but it could be catching its breath. After a 40 percent plus run for the NASDAQ since April, historically a pause is normal as the market recalibrates around the latest economic data and anticipated Fed policy."

Looking forward, investors are closely monitoring Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium later this week for signals on monetary policy direction. According to CME’s FedWatch tool, markets currently assign an 83% probability of a quarter-point rate cut at the Federal Reserve’s September meeting.

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