The sell-off in technology stocks this week in US markets created uncertainty among investors. On Tuesday, the Nasdaq index fell by 1.5%, while the Dow Jones closed the day at a record high. However, the decline in technology stocks dragged the S&P 500 down by 0.6%.
Analysts say this decline is due more to position changes than to sudden news. Factors increasing investor concerns include OpenAI CEO Sam Altman’s warning of an “inevitable bubble,” reports of limited returns on AI investments, and job losses. In addition, the upcoming Nvidia earnings report, the potential US government investment in Intel, and the cautious atmosphere ahead of the Jackson Hole meeting are affecting the markets.
Global repercussions were also noteworthy: Japan’s Nikkei fell by 1.5%, and South Korea’s Kospi by 0.7%. European stock markets remained stagnant, while China’s Shanghai index rose to a 10-year high.
Markets are now focused on the Fed’s upcoming minutes and the possibility of an interest rate cut.
Futures contracts continue to price in a probability of over 80% of interest rate cuts in September.
