US STOCKS-Nasdaq, S&P end lower as Jackson Hole jitters hit tech stocks

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Magnificent Seven stocks fall

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Home Depot (HD) up after retaining annual forecasts

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Intel (INTC) jumps on SoftBank investment

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Palo Alto Networks (PANW) forecasts strong fiscal 2026 revenue and profit

(Recasts with preliminary close of trading)

By Johann M Cherian, Sanchayaita Roy and Carolina Mandl

Aug 19 (Reuters) -

The Nasdaq and S&P 500 dipped 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 Nvidia (NVDA), Microsoft (MSFT) and Meta Platforms (META) lost, after having rallied for much of the year.

The key event this week is the Fed's annual symposium at Jackson Hole, Wyoming, from Aug. 21-23, where Powell's comments will be scrutinized for any clues on the central bank's outlook on the economy and monetary policy.

"It seems like folks are hedging a little going into Jackson Hole, thinking Powell might be more hawkish than markets currently appreciate," said James Cox, managing partner at Harris Financial Group.

Interest rate futures point to a total of two rate cuts this year worth 25 basis points each, with the first expected in September, according to data compiled by LSEG.

According to preliminary data, the S&P 500 lost 37.62 points, or 0.58%, to end at 6,411.53 points, while the Nasdaq Composite lost 313.83 points, or 1.45%, to 21,315.95. The Dow Jones Industrial Average rose 10.82 points, or 0.02%, to 44,922.64.

Steve Sosnick, chief strategist at Interactive Brokers, said some investors are taking some profits from tech stocks and rotating into other sectors. "(This move) spills into the broader market because of those stocks' weight in major indices," he added.

Some market participants also expressed some concerns about AI-related stocks after OpenAI's CEO Sam Altman said they are in a bubble in an interview with "The Verge" late last week.

Still, the real estate sector of the S&P 500 rose, helped by better-than-expected

housing data

.

A Reuters poll showed on Tuesday that the S&P 500 will end 2025 just

below current near-record levels

, at 6,300 points, reflecting tempered optimism amid ongoing concerns over the economic impact of President Donald Trump's global tariffs and uncertainty surrounding Fed rate cuts.

The blue-chip Dow briefly hit a record high on Tuesday, aided by a rise in Home Depot's (HD) shares after the retailer kept its annual forecasts intact.

Home Depot (HD) rose despite

missing

quarterly results estimates, while rival home-improvement chain Lowe's also gained.

Earnings from Lowe's and big-box retailers Walmart (WMT) and Target (TGT) later this week are now in focus as investors await more insight on the health of the American consumer.

"Consumers are still not really spending at full speed ahead, they're a little bit cautious," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"They're waiting to see the full results of the tariffs' impact on the upcoming holiday sales in a couple of months from now."

Intel (INTC) jumped after the chipmaker got a $2 billion

capital injection

from Japan's SoftBank Group.

Palo Alto Networks (PANW) rose after the cybersecurity

company forecast

fiscal 2026 revenue and profit above estimates.

Medtronic (MDT) lost, after the company said it would

add two new directors

to its board after Elliott Investment Management took a large stake in the medical-device maker.

(Reporting by Carolina Mandl, in New York, Johann M Cherian and Sanchayaita Roy in Bengaluru; Additional reporting by Saeed Azhar; Editing by Devika Syamnath and Aurora Ellis)