Markets retreat as traders await Wednesday’s US inflation report, with technology stocks leading declines across major indices.
US equities closed lower on Tuesday, with the Nasdaq Composite falling 0.60% as technology and growth shares underperformed. The S&P 500 and Dow also declined, down 0.32% and 0.34%, respectively, while small-cap stocks rose modestly, gaining 0.32% on the Russell 2000.
The sell-off in tech was broad-based, with On Holding plunging over 20% and AppLovin, Datadog, and Alphabet all posting losses above 3%. Treasury yields edged lower, and the US dollar remained stable against major currencies amid geopolitical uncertainties, including fading optimism over a US-Iran agreement.
Investors are now focused on Wednesday’s US Consumer Price Index report, which could shape expectations for the Federal Reserve’s September policy meeting.