This content was published on <\/p>\n
August 20, 2025 – 19:01\n<\/p>\n
(Bloomberg) \u2014 A week-long selloff in technology stocks worsened, saddling investors with the biggest losses since April, as traders bailed out of the highest-priced companies before Federal Reserve guidance on rates.<\/p>\n
In only four days, the S&P 500 lost about $1 trillion. Concerns about overstretched valuations in tech giants at a time when the Fed may not deliver the magnitude of policy easing forecast earlier in the year spurred a continued slide in equities from all-time highs.<\/p>\n
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All megacaps retreated, with Nvidia Corp. extending a two-day plunge to 5%. The Nasdaq 100 slid 1%. The S&P 500 fell for a fourth straight session. After almost doubling this year, Palantir Technologies Inc. tumbled 20% in six days.<\/p>\n
Matt Maley at Miller Tabak says he\u2019ll be looking for clues on whether this rout is just a hiccup or something more concerning.<\/p>\n
\u201cWe\u2019re going to have to see more downside follow-through before we raise any yellow warning flags,\u201d he said. \u201cInvestors could become very nervous, very quickly, if the tech sector \u2013 and thus the market \u2013 do indeed start to see a material decline.\u201d<\/p>\n
US stocks are \u201cin the early days\u201d of a bubble, although the critical point for a correction has yet to come, Oaktree Capital Management LP co-founder Howard Marks cautioned.<\/p>\n
\u201cI\u2019m certainly not ringing the alarm bells. The point is that things are expensive,\u201d he told Bloomberg Television.<\/p>\n
As traders geared up for Jerome Powell\u2019s speech in Jackson Hole on Friday, bonds saw mild gains, with 10-year yields falling two basis points to 4.28%.<\/p>\n
To Mark Hackett at Nationwide, investors are showing fatigue following a 30% rally since April.<\/p>\n
\u201cWe\u2019re seeing a notable drop in leadership, with large-cap growth significantly lagging small caps and value this month,\u201d Hackett said. \u201cStill, volatility and credit spreads remain calm, suggesting investors\u2019 fears are modest.\u201d<\/p>\n
Megacap companies had led the stock market for months, thanks to a growing demand for artificial intelligence products and cloud-computing services. Some strategists now warn that the their extra-heavy weight could turn the rotation out of the sector into a broader stock-market rout.<\/p>\n
\u201cRotation can only take place if the tech stocks hold up,\u201d said Maley at Miller Tabak. \u201cIf they decline, the only rotation we\u2019ll see will be into cash.\u201d<\/p>\n
For some investors, profit-taking has taken precedence over continued risk taking, amid concerns about valuations becoming stretched, according to Fawad Razaqzada at City Index and Forex.com. Still, the downside is likely to be limited even for tech names.<\/p>\n
\u201cWhether the tech sector will break to new highs on the back of Powell\u2019s comments remains to be seen,\u201d Razaqzada noted. \u201cIn any case, global central banks are easing policy, and this is keeping the global stock markets supported.\u201d<\/p>\n
The slide in US stocks is creating an opportunity to \u201cbuy-the-dip,\u201d according to JPMorgan Chase & Co.\u2019s trading desk.<\/p>\n
\u201cToday feels like a test for the dip-buyers with data on PMIs on Thursday and Federal Reserve Chair Jerome Powell at Jackson Hole may prove to be market movers\/narrative changers,\u201d Andrew Tyler, head of global market intelligence at JPMorgan, wrote in a note to clients Wednesday.<\/p>\n
To Carol Schleif at BMO Private Wealth, stock valuations are full right now leaving little wiggle room for disappointment.<\/p>\n
\u201cThe stock market is currently discounting a bright future ahead, and that assessment is largely justified thanks to earnings, which have been much stronger than originally expected and increasing clarity on trade and tax policy,\u201d she said.<\/p>\n
Corporate Highlights:<\/p>\n
Microsoft Corp. has curtailed Chinese companies\u2019 access to advance notifications about cybersecurity vulnerabilities in its technology after investigating whether a leak led to a series of hacks exploiting flaws in its SharePoint software. Target Corp. named veteran Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales. Off-price retailer TJX Cos. raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters. Est\u00e9e Lauder Cos. issued a weak profit outlook for its fiscal year, dragged down in part by tariff costs. The firm said it has hired external advisors to conduct a review of the brands it owns in a bid to accelerate a turnaround after years of sales declines. Lowe\u2019s Cos. agreed to buy Foundation Building Materials for about $8.8 billion in cash, accelerating the home-improvement supplier\u2019s push to serve more professional customers. Guess? Inc. will be taken private by Authentic Brands Group LLC in partnership with co-founders Maurice and Paul Marciano and Chief Executive Officer Carlos Alberini. Luxury builder Toll Brothers Inc. missed analysts\u2019 estimates for quarterly orders as affordability challenges and economic uncertainty held back buyers. Thoma Bravo is in advanced talks to buy human resources software provider Dayforce Inc. in what would be one of the takeover firm\u2019s largest-ever deals. Alaska Air Group Inc. debuted a new loyalty program that will let members choose from three options to earn award points, the first such offering in the US industry. Novo Nordisk A\/S implemented a global hiring freeze as the Danish drugmaker seeks to cut costs and regain its footing in the competitive market for weight-loss treatments. Baidu Inc.\u2019s revenue slipped slightly, hurt by an economic downturn that\u2019s capping its ability to fight bigger rivals in AI and make inroads in new growth areas. SQM, the world\u2019s biggest lithium producer by market value, boosted its sales guidance for this year and struck a note of optimism on prices after posting a 28% slump in second-quarter core earnings. Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
The S&P 500 fell 0.6% as of 12:58 p.m. New York time The Nasdaq 100 fell 1% The Dow Jones Industrial Average fell 0.1% The MSCI World Index fell 0.4% Bloomberg Magnificent 7 Total Return Index fell 1.6% The Russell 2000 Index fell 0.6% Currencies<\/p>\n
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1660 The British pound fell 0.2% to $1.3460 The Japanese yen rose 0.4% to 147.11 per dollar Cryptocurrencies<\/p>\n
Bitcoin rose 0.2% to $113,799.97 Ether rose 3.4% to $4,298.22 Bonds<\/p>\n
The yield on 10-year Treasuries declined two basis points to 4.28% Germany\u2019s 10-year yield declined three basis points to 2.72% Britain\u2019s 10-year yield declined seven basis points to 4.67% The yield on 2-year Treasuries declined three basis points to 3.72% The yield on 30-year Treasuries was little changed at 4.90% Commodities<\/p>\n
West Texas Intermediate crude rose 1.6% to $63.32 a barrel Spot gold rose 0.9% to $3,345.23 an ounce \u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"This content was published on August 20, 2025 – 19:01 (Bloomberg) \u2014 A week-long selloff in technology stocks…\n","protected":false},"author":2,"featured_media":718,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[989,79,990,991,18,19,17,188,992,993],"class_list":{"0":"post-12033","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bonds","9":"tag-business","10":"tag-business-general","11":"tag-currency-values","12":"tag-eire","13":"tag-ie","14":"tag-ireland","15":"tag-markets","16":"tag-stocks","17":"tag-ticker"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/12033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=12033"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/12033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/718"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=12033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=12033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=12033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}