Nasdaq 100 Falls 1.5% as Tech-Led Selloff Picks Up

Alicia Levine, Head of Investment Strategy and Equities at BNY discusses her market outlook as well as expectations for rates as the Fed meets in Jackson Hole, Wyoming.

A renewed selloff in the world’s largest technology companies drove stocks lower as traders looked for clues on whether the valuation-driven pullback will soon lure buyers or signal more losses.

The tech-heavy Nasdaq 100 was down about 1.5%. All megacaps retreated, with Nvidia Corp. falling 3%. The S&P 500 fell for a fourth straight day. Palantir Technologies Inc. sank after more than doubling in 2025. Target Corp. tumbled 8% after naming a new CEO.

To Matt Maley at Miller Tabak, the recent decline in the tech sector could very well turn out to be the kind of mild hiccup we saw three weeks ago. He says we’d need to see more downside follow-through before raising any “yellow warning flags.”

“That said, ‘rotation’ can only take place if the tech stocks hold up,” Maley said. “ If they decline, the only ‘rotation’ well see will be into cash.”

As traders geared up for Jerome Powell’s speech in Jackson Hole on Friday, bonds saw muted action. The yield on 10-year Treasuries declined two basis points to 4.29%. The dollar fluctuated.

Meantime, the director of the Federal Housing Finance Agency is urging Attorney General Pam Bondi to investigate Federal Reserve Governor Lisa Cook over a pair of mortgages. President Donald Trump said on social media Cook “must resign” now.

Corporate Highlights:

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.

Estée 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’s Cos. agreed to buy Foundation Building Materials for about $8.8 billion in cash, accelerating the home-improvement supplier’s 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’ 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’s 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.’s revenue slipped slightly, hurt by an economic downturn that’s capping its ability to fight bigger rivals in AI and make inroads in new growth areas.

SQM, the world’s 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.

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals