Post-Bell | Nasdaq Tumbles 1.5%. Tesla Drops 2%; Nvidia Dips 3.5%; AMD, Arm Slide 5%; Viking Tumbles 42%; XPeng, NIO up 4%; Intel Jumps 7%

The Nasdaq and S&P 500 slid on Tuesday driven by tech stocks, as investors gear up for what Federal Reserve chair Jerome Powell will say about the path of interest rates at a key conference later in the week.

The Nasdaq fell as megacaps lost, after having rallied for much of the year. NVIDIA fell 3.5%, the biggest drop in nearly four months.

Market Snapshot

The Dow Jones Industrial Average rose 10.45 points, roughly flat, to 44,922.27, the S&P 500 lost 37.78 points, or 0.59%, to 6,411.37 and the Nasdaq Composite lost 314.82 points, or 1.46%, to 21,314.95. XPeng Inc., NIO Inc. up 4%; SoundHound AI Inc fell 10%; Advanced Micro Devices, ARM Holdings fell 5%; CoreWeave, Inc. fell 4%; Tesla Motors fell 2%.

Market Movers

Intel rose 7% after an announcement that SoftBank would invest $2 billion in the chip maker. That followed a decline of 3.7% in the stock Monday following reports that said Trump administration officials were discussing taking a 10% stake in the company. A 10% stake would make the government one of the company's largest shareholders.

Home Depot rose 3.2% after second-quarter earnings and revenue missed analysts' expectations. Still, the home-improvement retailer said it continues to expect fiscal-year sales to rise 2.8% and comparable-store sales to increase about 1%.

Palo Alto Networks rose 3.1% after reporting fiscal fourth-quarter earnings that topped analysts' estimates and issuing first-quarter and fiscal 2026 guidance that also was better than forecasts.

The cybersecurity company said it expects adjusted profit in the fiscal year of $3.75 to $3.85 a share, better than the consensus call for $3.68. Palo Alto also sees fiscal 2026 next-generation security annual recurring revenue of $7 billion to $7.1 billion for year-over-year growth of between 26% and 27%.

Fabrinet, the contract electronics manufacturer, reported fiscal fourth-quarter earnings and revenue that beat expectations. It also forecast current-quarter revenue of between $910 million and $950 million, a range whose midpoint is higher than the consensus forecast among analysts. The stock, however, declined 13%.

Drugmaker Viking fell 42% after releasing results of a study of its experimental weight-loss pill, indicating the data were worse than investors' expectations. In a mid-stage clinical trial, VK2735, which is taken once daily as a pill, resulted in an average weight reduction of 12.2% in patients taking the highest dose over a 13-week period. Patients on placebo lost 1.3% of their weight. Nearly a third of patients discontinued the treatment, suggesting side effects could be a concern.

Palantir Technologies declined 9.4%. The company, which sells artificial-intelligence software to manage and analyze large amounts of data, was the worst performer in the S&P 500. Shares have fallen for five straight sessions.

XPeng rose 4.2% in U.S. trading after the Chinese maker of electric vehicles posted a second-quarter loss that narrowed from a year earlier. Revenue rose 125% from a year earlier.

Market News

Crypto Extends Decline as Investors Shed Riskier Assets

Bitcoin and other cryptocurrencies retrenched further on Tuesday, following high-growth tech stocks lower as investors turned more risk averse ahead of Federal Reserve Chair Jerome Powell's Jackson Hole speech on Friday.

Bitcoin continued to backtrack from its record last week, falling 2.8% over the last 24 hours to $112.9K. Ethereum slid 5.4% to $4.09K.

More-established crypto-linked stocks also felt the pain. Coinbase Global, Inc. dipped 6%, Bakkt Holdings, Inc. tanked 8%, Hut 8 Mining Corp wilted 10%, Strategy swooned 7%, MARA Holdings lost 6%, and Riot Platforms fell 3%.

Trump Claims Powell 'Hurting' the Housing Industry in Latest Attack on Fed Chair

U.S. President Donald Trump said on Tuesday that Federal Reserve Chair Jerome Powell is "hurting" the housing industry "very badly" and said he should cut interest rates.

Trump has repeatedly urged Powell to cut interest rates while also sharply criticizing Powell.