By Mucahithan Avcioglu
ISTANBUL (AA) – US stocks ended with losses midweek as big tech companies like Nvidia and Oracle traded lower, sparking a tech sell-out.
The Dow Jones Industrial Average fell 0.37%, or 171.50 points, to close at 46,121.28.
The Nasdaq composite was down 0.33%, or 75.62 points, to close at 22,497.86, while the S&P 500 dropped 0.28%, or 18.95 points, to 6,637.97.
While Tuesday’s statements by Fed Chair Jerome Powell were evaluated by investors, a negative trend was observed in the stock markets ahead of the release of important data regarding the US economy on Thursday and Friday.
Nvidia fell 0.8%, extending its losses from Tuesday. The chipmaker launched a $100 billion agreement with OpenAI earlier this week.
Oracle, another major AI player, lost 1.7%, continuing its two-day losing streak.
In addition, Micron Technology's stock fell 2.8% on the company's profits and outlook.
The sell-out came after Powell's speech Tuesday, in which he called equity prices "fairly highly valued."
“We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we’re trying to achieve,” he said. “But you’re right, by many measures, for example, equity prices are fairly highly valued.”
Previously, the broader market had entered a rally, hitting record levels as the central bank cut the policy rate last week for the first time this year, and expectations for further rate cuts increased.
Meanwhile, President Donald Trump canceled a meeting with House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer that was supposed to take place this week and would have prevented a government shutdown before a Sept. 30 deadline.
On the data side, new home sales in the US hit 800,000 in August, climbing 20.5% month-on-month and exceeding market expectations.
Meanwhile, building permits, a key indicator of market demand, dropped 2.3% from the previous month, totaling 1.33 million in August.
On the corporate side, Canadian miner Lithium Americas' shares soared more than 95% as the US government is seeking an equity stake in the firm, CNBC reported Wednesday.