The artificial intelligence sector experienced widespread declines, raising investor concerns about potential bubble formation in the market.
Adding to market concerns are worries about government intervention. Sources indicate that the Trump administration is considering taking stakes in chipmakers such as Intel, just weeks after reaching unprecedented revenue-sharing agreements with Nvidia and AMD.
The Federal Reserve's July meeting minutes revealed that nearly all policymakers deemed it appropriate to maintain the federal funds rate target range at 4.25% to 4.50%, despite two dissenting voices. The minutes confirmed the decision to keep rates unchanged.
The Fed's annual symposium will commence Friday in Jackson Hole, Wyoming, where Chairman Powell is expected to deliver a speech. His remarks will be closely scrutinized for policy signals as investors continue to digest expectations for a 25 basis point rate cut by the Fed in September.
Meanwhile, investors are also monitoring news of Trump's call for Fed Governor Cook's resignation, citing allegations of her involvement in mortgage fraud.
Earnings from major retailers, considered a barometer of US consumer health, are also scheduled for release this week. Market sentiment has been dampened by concerns that tariffs could drive up prices. Target's stock declined after the company appointed a new CEO and maintained the lowered annual forecast issued in May.
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