NEW YORK - US stocks finished mixed on Tuesday as weakness in tech weighed on markets.
The Dow Jones Industrial Average added 10.45 points, or 0.02 percent, to 44,922.27. The S&P 500 lost 37.78 points, or 0.59 percent, to 6,411.37, while the Nasdaq Composite tumbled 314.82 points, or 1.46 percent, to 21,314.95.
Seven of the 11 primary S&P 500 sectors closed higher. Real estate led the gains with a 1.8 percent rise, followed by consumer staples, which advanced 0.99 percent. Technology and communication services were the biggest laggards, falling 1.88 percent and 1.16 percent, respectively.
Retail earnings were in focus, with Home Depot reporting second-quarter results that slightly missed Wall Street expectations. Still, shares rose 3.17 percent as the company returned to consistent same-store sales growth in the United States, signaling a possible rebound in the housing market.
Target is set to report results on Wednesday, with Walmart following on Thursday, giving Wall Street a clearer picture of consumer strength as Trump's tariffs take hold.
Corey Tarlowe, senior vice president of equity research with Jefferies, said Walmart is set for strong Q2 sales growth despite margin pressure from tariffs, while Target faces more uncertainty but could see upside if results meet expectations.
Mega-cap tech stocks extended declines, dragging on the broader market. Nvidia and Broadcom each fell around 3.5 percent, Meta Platforms slid 2 percent, and Microsoft, Amazon and Tesla lost nearly 1.5 percent apiece. Apple and Alphabet posted smaller losses.
"The AI trade may not be breaking but it could be catching its breath. After a 40 percent plus run for the NASDAQ since April, historically a pause is normal as the market recalibrates around the latest economic data and anticipated Fed policy," said Jayson Bronchetti, chief investment officer at Lincoln Financial.
Looking ahead, investors are awaiting remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium later this week for clues on monetary policy. According to CME's FedWatch tool, markets are pricing in an 83 percent probability of a quarter-point rate cut at the Fed's September meeting.
