Major Index Performance
Tuesday’s session showcased the market’s vulnerability to tech sector swings and tariff-driven cost increases. Defensive stocks outperformed as big tech led the retreat, and investors braced for more clarity from central bank leadership later this week. Yes indeed, Wall Street’s record run reversed sharply on Tuesday as heavy selling in technology large caps weighed on the major benchmarks. The S&P 500 dropped 37.78 points, or 0.59%, to close at 6,411.37, led by steep declines in big tech. The Dow Jones Industrial Average finished virtually unchanged, up 5.51 points at 44,951.63, having touched an all-time high intraday before fading late. The Nasdaq Composite slumped 314.82 points, or nearly 1.46%, to settle at 21,314.95, marking one of its worst days since April’s tariff shock. The Russell 2000 gave up recent gains down .78% and closing at 2,276.61, consolidating after this month’s rally as traders rotated out of small-caps amid balance sheet caution.
Macroeconomic Reports
Markets were largely driven by sector-focused headlines, as no major macroeconomic reports landed today. Investor attention turned to Fed Chair Powell’s scheduled Friday speech at Jackson Hole, with rate cut expectations under review. Recent retail sales and inflation data underscore growth resilience, though the tech rout exposed market reliance on a handful of outsized performers.
Federal Reserve, Yield Curve & Interest Rates
Treasury yields held steady, but the U.S. yield curve continues to steepen as markets anticipate both rate cuts and increased long-term issuance. The 2-yr closed at 3.763% and the 10-yr closed at 4.30%, both down on the day. This steepening reflects uncertainty about future Fed policy moves, upcoming Jackson Hole commentary, and the inflationary impact of new tariff measures. No new FOMC decisions were communicated today.
Tariff and Trade News
President Trump’s 50% tariffs on hundreds of derivative steel and aluminum products took effect Monday, broadening the scope well beyond raw metals to cover goods such as household appliances and industrial inputs. U.S. importers are scrambling to adjust, with logistics companies facing costly, last-minute cargo rerouting. The new rules close loopholes and sharply escalate trade tensions, with American manufacturing and consumer costs expected to rise.
Corporate Headlines & Share Price Movements
NVIDIA (NVDA) led the decline, falling 3.5% as chip and AI stocks faced broad-based profit-taking after outsized YTD gains. Market participants continue to parse the risks of export curbs and higher input costs from tariffs.
Tesla (TSLA) maintained relative stability falling 1.75%, shielded by news of increased production forecasts and stable delivery momentum. The EV leader’s progress in energy storage and autonomy remains in focus.
Meta Platforms (META) dropped in tandem with tech peers down 2.07%, as momentum rotated out of large-cap growth stocks. Meta’s heavy investments in AI and data centers present long-term promise despite near-term volatility.
McDonald’s (MCD) gained .72% to close at $310.93 as investors sought haven in defensive consumer staples, benefiting from sector rotation during periods of tech weakness. they are also adding K-POP boys band BTS to Happy Meals beginning in September.
Intel (INTC) bucked the selloff, rallying to $25.31, +6.97% on plans for strategic government investment. Reports of negotiations for a U.S. Treasury 10% stake drove shares higher, with implications for domestic chip capacity and onshoring.
Oracle (ORCL) trended lower with the tech sector down 5.80%, pausing after weeks of sustained growth fueled by AI and cloud business optimism.
Palantir Technologies (PLTR) retreated from recent highs down a solid 9.35%, pulled down by risk-off sentiment in analytics and cloud names. Growing government contract momentum remains a key tailwind.
Rio Tinto Group (RIO) added .38% to close at $60.59, pressured by uncertainty over global trade friction and commodity price volatility as new tariffs come into play.
IPO Activity (NYSE/Nasdaq)
Yimutian Inc. (YMT)
went public today, debuting on the Nasdaq at $4.10. Shares closed at $2.80 (-8.54%), reflecting challenging market conditions and tepid investor appetite for small-cap technology IPOs.
Commodities & Cryptocurrencies Closing Prices
- Gold: Closed up .02% $3.359.30/oz with demand steady amid heightened trade tension.
- Silver: Little changed at $37.34/oz, moving in tandem with gold.
- Oil (WTI): Closed up .26% at $62.51/barrel as traders weighed the impact of tariffs and shifting global demand.
- Bitcoin: Consolidated just above $113,670, continuing to exhibit range-bound volatility.
