Why stock market is down today. Latest on Target, Amazon and other stocks
Meanwhile, Target shares dropped over 11% in early trading, making the stock one of the S&P 500′s worst performers on Wednesday. Lowe's earnings beat expectations, and the stock benefited from it.
Nvidia, Advanced Micro Devices, and Broadcom shares fell more than 3%. Shares of Palantir declined about 5.5%. Intel, Apple, Amazon, Alphabet, and Meta also declined.
Why is the stock market down today?
'It's not a surprise to see some investors taking profits in tech stocks, which have had an incredibly strong run, with some up over 80% since the early April lows. Market volume in general is typically quite sparse in late August, leading to wider swings than fundamentals would warrant,' Carol Schleif, chief market strategist at BMO Private Wealth, told CNBC.
On the tech side, a possible contributor to the decline was a study from MIT's Nanda Initiative that warned most corporations are not yet seeing any measurable return from their generative AI investments, Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, tole the Associated Press.
Target's shares dropped after the retailer named Michael Fiddelke as its next chief executive officer. The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February.
He will also join Target's board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair.
The decline in the stock market comes as investors are looking forward to July meeting minutes from the Fed. Fed Chair Jerome Powell will speak on Friday. According to CME's FedWatch tool, Fed funds futures are pricing in a nearly 85% likelihood of the central bank cutting interest rates in September.
'Investors also remain cautious heading into Jackson Hole on Friday. If Powell's language is more hawkish, that could pressure tech stocks even further, as a continuation of these elevated interest rates is generally a headwind for the tech sector,' Schleif further told CNBC.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
First Post
22 minutes ago
- First Post
Big Tech's AI Obsession Is Shaking Wall Street Vantage with Palki Sharma
Big Tech's AI Obsession Is Shaking Wall Street | Vantage with Palki Sharma | N18G Wall Street's AI party may be hitting its first reality check. For 18 months, the 'Magnificent 7' — Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia — have powered the S&P 500. But cracks are showing. A blunt MIT study revealed that 95% of AI pilot projects fail, sparking panic selling. Nvidia, Meta, Palantir, and others tumbled as investors questioned whether AI is truly delivering returns or just burning cash. Big Tech plans to spend $400B on AI infrastructure in 2025 — but will hype keep pace with reality? Is this the start of the AI bubble bursting? Palki Sharma tells you. See More
Hans India
22 minutes ago
- Hans India
How to Trade S&P 500 Futures with Futures trading Prop Firms: A Guide for Aspiring Funded Traders
Futures Trading S&P: 500 futures contracts are one of the most popular and frequently traded trading instruments. Due to its liquidity and volatility, this futures product represents the performance of 500 of the largest American companies. It is also popular among both day traders as well as institutional players. It is possible to develop a career in business and gain access to sufficient capital by working with futures trading firms. Prop firms offer traders sophisticated platforms, funded accounts and support systems to allow them to focus on their strategy and execution without risking any of their own money. This article is a guide for traders who wish to learn how to trade S&P 500 futures within a prop firm. Understanding S&P 500 Futures S&P 500 Futures are derivative contracts that allow traders to predict the future value of S&P 500. These contracts are available in a variety of sizes and trade on the Chicago Mercantile Exchange. The E-Mini S&P500 is a highly traded contract in the market, with a size of $ 50 times the value of the index. The Micro E-Mini S&P500 (Micro E Mini S&P) is a smaller version of the S&P 500 that's perfect for small traders and novices. Full size S&P Futures are mostly used by institutional traders due to their large contract sizes. These contracts are ideal for international traders who trade in different time zones, as they allow trading to take place up to 23 hours. What are Futures Trading Prop firms? Prop firms are private trading companies that offer traders firm Capital for futures trading in exchange for a percentage of profits. These companies provide funds to traders after they have successfully completed the evaluation or challenges. Prop firms have many benefits Personal capital is not at risk. Expert platforms and data feeds are available. Display-based scaling is a possibility. Advice and structured rules One of the most important requirements is to pass a trading assessment. Respecting risk guidelines and daily loss cap Perfect Why S&P Futures are Ideal for Prop Firm Traders Prop firms are an excellent fit for S&P futures business for a number of reasons. 1. Lots of liquid ES and MES contracts are flexible due to their tight spread and large order book. It is essential to meet the proposal requirements where accuracy of execution is required. 2. Profits can be found by using instability S&P futures offer daily volatility, which can provide many opportunities for business. Instability is easier to manage for a beginner because it's balanced and not unexpected. 3. Margin efficiency, leverage and profitability Funded traders are able to manage large-scale positions at a low cost of capital, with high leverage. They also have low margin requirements. This makes them ideal for achieving performance goals in a prop account. 4. Market Knowledge Most traders are familiarized with American equity markets and can easily analyze and create strategies around the S&P 500. How to Start: A Step-byStep Approach Step 1: S&P 500 Futures Fundamental Overview Identify the tick size, trading times, margin requirements, and contract details. As an example: The tick size for ES is 0.25 index points, which equals $ 12.50, while the tick size for MES is $ 1.25. A tight tick shape allows for precise entry and exit. Step 2: Select the right futures trading prop firm Select Futures trading Prop Firms who provide S&P500 Futures funded accounts. Consider these important things: Structure of evaluation (1-step or 2 step challenges). The withdrawal process and the payment percentage. Compatibility across multiple platforms Equipment for Community, Education and Support The topstep for 2025 is from the well-known futures broker Ear2 Trade on Leeloo Forestup Step 3: Pass your evaluation The majority of businesses require traders to show profits in a predetermined period of days while keeping the risk at a minimum. Pass the advice: Use only one tool, e.g. MES or ES. Adopt a risk-business strategy that is stable. Avoid the news industry if you're not an experienced journalist. Step 4: Develop a Trading Strategy In your strategy, you should reflect on the trading style that you use and any rules for proposals. Consider: Strategies for trends such as: Price action and moving Average Trading is a strategy that involves a brexakout after a consolidation area has been broken down. Reverse strategy: Before going live, use Divergence and Resistance/Support Indicators. Step 5: The management of risk is non-negotiable Prop firms have strict daily withdrawal limits and loss caps. Profits and capital protection are equally important. Set up a loss stop for each business. Limit your daily trading to avoid overtrading. Avoiding venual trading and accepting loss is the best way to avoid it. S&P 500 Futures Trading Tools and Platforms Futures trading requires reliable platforms and market data. Ninjatrader is the best platform for most prop firms. It's great for charting, order execution and strategy automation. Tradovate is a browser-based application that allows for easy ordering and has replay functionality. Rimthoc : Expert data feed to improve performance and real-time execution. These devices can help you to increase the accuracy of your trading and achieve the results that Futures Trading Prop companies are looking for. Common mistakes to avoid Prop trading is more about quality than quantity. Economic events can increase the volatility of S&P futures. Ignoring the psychology of trading: Fear and greed increase in a funded environment. Absence of Journaling : Without tracking trades, the progress is left to speculation. Conclusion: Trade smart, Trade funded Best prop firms like FundingTicks that trade S&P futures are a great way to get into professional trading, without having to invest a lot of capital. Props firms reward structured strategies with these contracts because they are liquid, unstable and suitable for trading. You can enhance your trading career whether you are a patient scale trader, or a disciplined swing trader by choosing the right prop firm and a target strategy. You will pass the test if you can demonstrate a steady edge, and if you are able to manage your risk well. Take advantage of this opportunity to learn, practice and eventually become a futures funded trader.
Time of India
an hour ago
- Time of India
US central bank under scrutiny as Donald Trump criticizes Powell; Jackson Hole braces for high-stakes speech, why Fed independence matters
The battle over the independence of the US Federal Reserve has intensified, with President openly calling for the resignation of a governor, threatening to fire Chair Jerome Powell, and repeatedly pressuring the central bank to cut interest rates. Tired of too many ads? go ad free now The escalating confrontation has revived a long-running debate over why the Fed has historically been insulated from direct White House influence — and why markets, economists, and past experience suggest that independence is critical. This week, Trump demanded that Fed governor Lisa Cook step down after a mortgage fraud allegation, which she has flatly denied, saying she would not be 'bullied' into leaving her post. The move came just ahead of Powell's much-watched speech at the annual Jackson Hole economic symposium, his last as chair before his term ends in May 2026. The Fed, which sets interest rates and manages the world's largest economy's monetary policy, has long been one of Washington's few independent power centers, AP reported. But Trump has repeatedly railed against Powell for refusing to cut borrowing costs, arguing that high interest rates are slowing growth and raising the government's debt-servicing bill. At one point, the president even accused Powell of mismanaging a $2.5 billion renovation of the Fed's headquarters, an allegation that economists dismissed as political theatre. Markets watch as Powell holds ground For Wall Street, Powell's stance matters. The Fed has kept its benchmark rate at 4.3% for five straight meetings, a level meant to tame inflation but one that also keeps mortgages, auto loans, and business borrowing expensive. Powell has said the central bank needs more time to assess the impact of Trump's sweeping tariffs on inflation and growth. Tired of too many ads? go ad free now But the economic picture has grown murkier. July's jobs report showed weaker-than-expected hiring, casting doubt on Powell's earlier description of the labour market as 'solid.' Inflation, meanwhile, ticked higher in July, with core prices rising 3.1% from a year ago — above the Fed's 2% target. That leaves Powell trapped between sluggish employment that argues for a rate cut and stubborn inflation that argues against it. Most economists expect Powell to hint at a possible cut later this year without committing to one in September, disappointing investors who have priced in an earlier move. 'The dilemma that the Fed is in has become, if anything, more intense,' said David Wilcox, former Fed economist and now senior fellow at the Peterson Institute. Why Fed independence matters The stakes go beyond one rate decision. Economists warn that allowing a president to dictate monetary policy could undermine confidence in US markets, push up government borrowing costs, and stoke inflation. The Fed's credibility rests on its ability to make unpopular decisions when necessary, such as raising rates even when politicians want easy money. That lesson was seared into economic memory in the 1970s, when then-Fed Chair Arthur Burns, under pressure from President Richard Nixon, kept rates low heading into the 1972 election. Inflation spiralled, and the US endured years of economic pain. It took Paul Volcker, appointed by President Jimmy Carter in 1979, to impose brutally high rates of nearly 20% — triggering a deep recession but ultimately taming runaway prices. Volcker's defiance is now seen as a defining example of why central banks must stand apart from day-to-day politics. Trump's pressure campaign Trump has made little secret of his frustration with Powell. He has accused him of mishandling inflation, mismanaging Fed operations, and blocking growth. At a recent tour of the Fed's renovation project, Trump tried to publicly embarrass Powell by claiming costs had soared to $3.1 trillion, a figure Powell calmly dismissed as including unrelated expenses. The president's attacks are unusual in their intensity, though not unprecedented. Past presidents, from Lyndon Johnson to Ronald Reagan, have privately leaned on Fed chiefs. What sets Trump apart is his willingness to air those grievances in public and to threaten removal of officials whose terms are protected by law. Legal experts say the president cannot fire a Fed chair simply for policy disagreements. The Supreme Court has signaled that removal would require 'cause' — such as misconduct or negligence. That may explain why Trump has focused on the renovation controversy as a potential pretext. Still, any attempt to oust Powell would likely spark a court battle and roil global markets. How much control presidents really have Despite its independence, the Fed is not unaccountable. The president appoints all seven members of its governing board, subject to Senate confirmation, and over time can reshape policy direction. Trump will get his chance when Powell's term ends in May 2026. Congress also has a role: in 1977, it gave the Fed its 'dual mandate' to pursue stable prices and maximum employment. The chair must testify before lawmakers twice a year, offering public explanations of the Fed's decisions. For now, however, Powell and his colleagues retain their votes on interest-rate policy. Even if Trump replaced Powell tomorrow, the 12-member rate-setting committee could still resist political pressure. That is precisely why markets prize Fed independence: it makes decisions more predictable, less politicized, and more credible. Powell's balancing act As Powell prepares to deliver his Jackson Hole speech, he faces one of the most delicate balancing acts of his career. The Fed must decide whether to prioritize cooling inflation, which risks choking growth, or cutting rates to cushion a slowing economy, which risks igniting prices. Either way, his words will be parsed by investors, politicians, and global markets alike. For Trump, the stakes are political; for Powell, institutional. For the Fed, it is about preserving a legacy of independence that, economists say, has safeguarded US stability for decades.
