After a months-long AI-fueled rally, U.S. tech stocks hit a speed bump this week. The Nasdaq Composite and S&P 500 tech sector sank sharply mid-week – both down roughly 2%+ by Wednesday – as investors locked in gains reuters.com. This pullback comes amid seasonally weak late-August trading and jitters over the Fed. With Fed Chair Jerome Powell’s Jackson Hole speech looming, many traders de-risked in case he douses hopes of imminent rate cuts reuters.com. “When you have overcrowding and such strong performance, it doesn’t take much to see an unwind of that,” noted Keith Lerner of Truist Advisory, adding that “everyone is waiting for the Fed” before piling back into high-flying tech reuters.com.
