Wall Street mostly down as tech still under pressure
Traders working on the floor of the New York Stock Exchange, in New York City.
NEW YORK - US stocks closed mostly lower on Aug 20 as the tech sector remained under pressure while investors kept an eye on retail earnings and weighed the prospect of Federal Reserve interest rate cuts.
The broad-based S&P 500 Index slid 0.2 per cent to 6,395.78, while the tech-focused Nasdaq Composite Index declined 0.7 per cent to 21,172.86.
The Dow Jones Industrial Average was flat at 44,938.31.
The tech pullback comes as markets reached a point where many stocks 'were overbought,' after soaring to record highs in recent weeks, said Mr Tim Urbanowicz, of Innovator Capital Management.
'But we still view the long-term trend (as) intact,' he said.
Among major tech companies, Nvidia shares lost 0.1 per cent while Advanced Micro Devices pulled back 0.8 per cent. Broadcom fell 1.3 per cent.
Investors also digested earnings from retailers Target, which saw a drop in sales, and Lowe's which beat expectations. Target shares closed more than six percent down while Lowe's edged up 0.3 per cent.
Markets have been assessing the health of retailers as they gauge the effects of President Donald Trump's tariffs on inflation and the broader economy.
Meanwhile, minutes of the Fed's most recent policy meeting in July also showed that a majority of officials judged that inflation risks outweighed those of employment for now – as they voted to keep interest rates unchanged despite two dissents.
Looking ahead, investors will be scrutinizing Fed chair Jerome Powell's speech at a central bankers' gathering on Aug 22 for signs on where rates may be headed next. AFP
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