When the stock exchange closed, the broad S&P 500 index had fallen back by 0.2 percent, the technology-heavy Nasdaq composite index by 0.7 percent, while the Dow Jones industrial index was unchanged.
One of the companies that faltered considerably was the processor manufacturer Intel, which plummeted 7 percent. This after it emerged that negotiations are underway with several investors to obtain a capital injection.
Computer manufacturer Dell also struggled, minus 5 percent.
The technology sector is wavering
It was another gloomy day also for the very index-heavy so-called "magnificent seven" companies – Google owner Alphabet, e-commerce giant Amazon, iPhone manufacturer Apple, Facebook's parent company Meta, software company Microsoft, semiconductor company Nvidia and electric car company Tesla.
All seven fell back – most Amazon, with 1.8 percent.
Also the major AI players AMD, Broadcom and Palantir landed far into the red minus figures.
Already on Tuesday, the major technology companies were wavering considerably.
But Carol Schleif, chief strategist at the consulting firm BMO Private Wealth, sees nothing strange in the price falls.
It is not surprising that some investors are taking profits on technology stocks, which have had an incredibly strong period – with some up over 80 percent since the lowest levels at the beginning of April, she says to CNBC.
On Wednesday, the protocol from the central bank Federal Reserve's (Fed) interest rate meeting in July was released. It showed that the majority was large for the decision to leave the key interest rate unchanged in the range 4.25–4.50 percent.
Awaiting Powell
Now everyone is waiting for what Fed chief Jerome Powell will say at the central bank meeting in Jackson Hole on Friday.
Advocates for lower interest rates hope that Powell will say something that suggests a reduction in September and that such a statement can give a boost to a continued strong stock market rise (bull market).
But David Russell, head of market strategy at the brokerage firm Tradestation, raises a warning finger.
The bulls may get some cold water thrown in their faces in Jackson Hole, he says to the news agency Bloomberg.
