US markets finished unevenly on Wednesday, with tech weakness outweighing strength in the Dow. The S&P 500 fell 0.24% to 6,395.78, its fourth straight decline. The Nasdaq Composite slid 0.67% to 21,172.86. The Dow Jones Industrial Average inched up 0.04% to 44,938.31.
Tech stocks retreat
Investors continued to take profits in heavyweight technology names, fuelling doubts over lofty valuations and the durability of the AI trade. Nvidia ended marginally lower, while Advanced Micro Devices and Broadcom slipped around 1% each. Intel tumbled nearly 7%, and Palantir dropped about 1%. Mega-cap names Apple, Amazon, Alphabet and Meta Platforms also weakened.
Fed minutes fuel rate cut bets
Minutes from the Fed’s July meeting revealed concerns about both inflation and the labour market, with most officials still prioritising inflation risks. Governors Christopher Waller and Michelle Bowman dissented, the first dual dissent since 1993.
Attention now turns to Chair Jerome Powell’s remarks at Jackson Hole on Friday. Markets are pricing in better than an 80% chance of a September rate cut, though a hawkish tone could deepen pressure on tech.
Australian market outlook
The SPI 200 futures point to a 23-point rise, or 0.3%, at the open. Gold added 1% to US$3,348 an ounce, Brent crude gained 1.7% to US$66.93 a barrel, and iron ore held steady at US$101 a tonne. The Australian dollar eased 0.3% to US64.35 cents.
Today’s agenda
New Zealand releases July trade data at 8.45am AEST, followed by Australia’s August PMIs at 9.30am and consumer inflation expectations at 11am. Later tonight, the focus shifts to weekly US jobless claims and the opening of the Jackson Hole gathering of central bankers.
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