20.08.202518:06:02UTC+00US Stocks Hold Losses after Stale FOMC Minutes

On Wednesday, U.S. equities experienced a decline as skepticism regarding future returns from AI investments exerted pressure on technology firms. Investors also examined retail earnings and the Federal Open Market Committee (FOMC) minutes. The S&P 500 and the Nasdaq 100 registered declines of 0.5% and 1%, respectively, while the Dow showed a slight decrease. The tech industry heavyweights, often referred to as the "Magnificent 7," faced a second consecutive session of losses, alongside research findings suggesting that the majority of AI companies will not achieve profitability. Notably, Nvidia, Meta, and Alphabet saw drops exceeding 1%.

In the retail sector, earnings reports were mixed. Target's stock plummeted by 10% after announcing a new CEO, even though it exceeded earnings expectations. Estee Lauder's shares fell by 4% following a pessimistic forecast. Conversely, TJX and Lowe's reported positive results, with their stocks climbing 7% and 3%, respectively. Walmart is scheduled to release their earnings report tomorrow.

The FOMC minutes indicated a general consensus that the risks of inflation surpass concerns related to employment. Additionally, it was noted that the effects of U.S. government tariffs might experience delays in influencing policy implementation. This meeting was held prior to substantial amendments to payroll data and weaker readings from the ISM Purchasing Managers' Index (PMI).