Nvidia, Palantir Losses Drag Wall Street Lower Again/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street extended its losses Wednesday as AI giants Nvidia and Palantir tumbled, fueling a broader decline. Mixed retail earnings also shaped trading, with Lowe’s and TJX climbing but Target sliding after announcing CEO Brian Cornell’s upcoming departure. Investors now await Fed Chair Jerome Powell’s Jackson Hole speech for rate cut clues.
Wall Street Decline and Market Movers: Quick Looks
- Indexes: S&P 500 down 0.6%, Dow off 35 points, Nasdaq down 1.4%.
- AI Under Pressure: Nvidia falls 3.7%, Palantir plunges 5.5% after steep prior losses.
- Retailers Split: Lowe’s (+1.9%) and TJX (+4.9%) beat forecasts, raise outlook.
- Target CEO Exit: Brian Cornell to step down Feb. 1, Michael Fiddelke to replace him.
- Other Weak Spots: Estee Lauder (-3.3%) issues weak outlook, La-Z-Boy (-12.1%) misses expectations.
- Fed in Focus: Powell’s Jackson Hole speech may hint at future rate cuts.
- Treasury Yields: 10-year yield slips to 4.29% from 4.30%.
- Global Markets: FTSE up 0.9%, Nikkei down 1.5%, Hang Seng up 0.2%.
Deep Look: Wall Street Stabilizes as Retail Earnings and Fed Outlook Shape Sentiment
NEW YORK (AP) — U.S. stocks stumbled again on Wednesday, dragged lower by sharp losses in high-profile artificial intelligence companies and mixed results from major retailers. The downturn extended Wall Street’s losing streak, marking its fourth straight session of declines after hitting record highs just last week.
Tech and AI Stocks Weigh Heavily
The S&P 500 dropped 0.6%, while the Dow Jones Industrial Average shed 35 points (0.1%) and the Nasdaq Composite fell 1.4%. The pressure came primarily from Nvidia and Palantir Technologies, two market leaders of the AI boom that investors now fear may have become overheated.
Palantir tumbled 5.5%, deepening its two-day decline to nearly 15%. The data analytics firm had more than doubled earlier in 2025, fueled by optimism around AI-driven growth, but is now facing skepticism that its rally went “too far, too fast.”
Nvidia slid 3.7%, following a 3.5% fall on Tuesday, as investors reassess its high valuation ahead of its upcoming profit report, one of the most anticipated events of the quarter. Despite the recent losses, the stock had already surged 35% year-to-date before this week’s pullback.
Retail Earnings Paint a Mixed Picture
Retailers dominated headlines as quarterly earnings results landed with mixed market reactions.
- Lowe’s gained 2.8% after beating profit expectations and announcing an $8.8 billion acquisition of Foundation Building Materials — a move that expands its footprint in commercial building supply.
- TJX Companies, owner of TJ Maxx and Marshalls, climbed 6.2% after topping both earnings and revenue forecasts. The company also raised its full-year guidance, with CEO Ernie Herrman citing strong demand across U.S. and international segments.
- Target, however, tumbled 10.1% despite slightly beating earnings expectations. The drop followed news that longtime CEO Brian Cornell will step down on Feb. 1, 2026, to be succeeded by internal candidate Michael Fiddelke, a 20-year veteran. While Cornell revitalized the brand in recent years, Target’s struggle with weak sales continues in a highly competitive post-pandemic retail landscape.
Elsewhere, Estee Lauder shares fell 2.3% after the beauty giant projected weaker-than-expected profits for the upcoming fiscal year, partly due to expected $100 million in tariff-related losses.
La-Z-Boy saw the steepest drop among major retailers, plunging 14.4% following a disappointing quarter. CEO Melinda Whittington cited “soft industry demand” and said the company is evaluating its non-core operations to relieve financial pressure.
Market Focus Turns to the Fed
All eyes are now on the Jackson Hole Economic Symposium in Wyoming, where Fed Chair Jerome Powell will deliver a major speech on Friday. Historically, this event has been used to signal shifts in U.S. monetary policy, and markets are hoping Powell may hint at upcoming interest rate cuts.
So far this year, the Fed has held its benchmark rate steady, but recent disappointing job growth data may be tipping the scales toward a more accommodative stance. Still, fears linger that inflationary pressures from Trump-era tariffs could keep the Fed cautious.
Treasury Yields and Bonds
Despite the uncertainty, bond markets remained relatively calm. The 10-year Treasury yield stayed flat at 4.30%, signaling stable investor expectations for future interest rate trends.
Global Market Highlights
Overseas, stock performance was varied:
- London’s FTSE 100 rose 0.7%, brushing off a surprise uptick in U.K. inflation, driven by soaring airfares and food prices.
- Japan’s Nikkei 225 slumped 1.5% after the government reported a larger-than-expected drop in exports, largely due to higher U.S. tariffs.
- Hong Kong’s Hang Seng Index inched up 0.2%, buoyed by a 12.5% surge in Pop Mart International Group after the toy company announced it expects over $4 billion in revenue this year and unveiled a new mini version of its popular Labubu dolls.
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