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Nasdaq, S&P 500 end lower as investors sell tech, buy less pricey sectors

21 August 2025 09:38 (UTC +04:00)

The Nasdaq and S&P 500 fell on Wednesday as investors sold tech stocks and moved into less highly valued sectors, as they also awaited remarks from Federal Reserve officials at their Jackson Hole symposium this week, APA reports, citing Reuters.

Tech stocks, which drove much of the recovery from Wall Street's April selloff, have been pulling back. The S&P 500 technology index (.SPLRCT), was down on the day, while sectors such as energy, healthcare and consumer staples rose.

"A broader lens tells you it's more of a rotation than a true sell off," said Allspring's senior portfolio manager, Bryant van Cronkhite. "Tech valuations look extended in the context of inflated spending today. Number two, I would say that there are a lot of pockets of the market that look very attractive from a valuation standpoint and they've been broadly ignored."

According to preliminary data, the S&P 500 (.SPX), lost 16.40 points, or 0.26%, to end at 6,394.97 points, while the Nasdaq Composite (.IXIC), lost 144.76 points, or 0.68%, to 21,170.19. The Dow Jones Industrial Average (.DJI), rose 1.48 points, or 0.00%, to 44,923.75.

Analysts listing other factors behind the tech sell-off mentioned OpenAI CEO Sam Altman's comments last week about artificial intelligence stocks being "in a bubble," and a Massachusetts Institute of Technology study that showed many tech companies were struggling to translate AI into actual profits.

Some investors also worried about government interference in the private sector. President Donald Trump's administration is looking into taking equity stakes in chip firms such as Intel (INTC.O), weeks after unprecedented revenue-sharing deals with Nvidia and AMD.

Nvidia (NVDA.O), Advanced Micro Devices (AMD.O), Intel (INTC.O), and Micron (MU.O), fell. Nvidia's quarterly results on August 27 are keenly awaited for clues on demand for artificial intelligence.