The benchmark S&P 500 index declined for a fourth consecutive day on Aug. 20 and the Nasdaq Composite was dragged lower as mega-cap technology stocks continue to sell off.
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The latest market declines came as stocks were pressured after the U.S. Federal Reserve released its latest meeting minutes and as major retailers reported mixed financial results for the year’s second quarter. Among the three main U.S. indices, only the blue-chip Dow Jones Industrial Average finished up on the day with a slight 0.04% gain.
The Nasdaq Composite lost 0.67%, while the S&P 500 fell 0.24%. The slide in U.S. equities is the result of investors taking profits in major technology and semiconductor names such as Palantir Technologies (PLTR) and Nvidia (NVDA). Concerns appear to have surfaced about the valuations of many technology stocks that have more than doubled this year.
Retail Worries
There are also concerns about the future path of interest rates in the U.S., which may have led to declines in mega-cap technology stocks such as Apple (AAPL), Amazon (AMZN), and Meta Platforms (META). Many of these leading technology companies have seen their share prices rise by 80% or more since the April lows earlier this year.
At the same time, mixed financial results from retailers such as Home Depot (HD), Lowe’s (LOW), and Target (TGT) have added to market jitters. TGT stock fell 6% after the discount retailer reported declining sales and named a new CEO. Minutes from the Federal Reserve’s July meeting showed that central bankers remain concerned about inflation and tariffs, which could impact future rate decisions.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 exchange-traded fund (SPY) currently has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 425 Buy, 73 Hold, and six Sell recommendations issued in the last three months. The average SPY price target of $718.24 implies 13.47% upside from current levels.
Read more analyst ratings on the SPY ETF
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