Tech selloff set to lose steam as Nvidia steadies: Markets Wrap

by Andre Janse van Vuuren 

Wall Street’s selloff in technology heavyweights showed signs of easing, with Nvidia Corp. poised to rebound from its slump. 

Nasdaq 100 futures slipped 0.2% after the gauge logged its second-worst drop since April. While most members of the Magnificent Seven extended declines in premarket trading, Nvidia rose 0.2% after Tuesday’s 3.5% retreat. Palantir Technologies Inc. dropped 0.7% after falling by the most since June. 

In Europe, stocks edged further toward a new high after erasing losses of 0.4%. The dollar and US Treasuries were little changed, with the 10-year rate at 4.30%. 

Investors pared back positions in big tech amid growing concern that the S&P 500’s recent record-breaking rally has run too far, too fast and has leaned heavily on a few growth leaders. That momentum will get a further test this week as focus turns to Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell is set to speak on Friday with traders firming up bets on a September cut in interest rates. 

“This was a textbook case of profit-taking after a powerful tech rally,” wrote Bjarne Breinholt Thomsen, head of cross-asset strategy at Danske Bank A/S. “Yesterday’s move does not alter our tactical stance. On fundamentals alone, we would likely overweight tech. But when factoring in stretched positioning and valuations, we remain neutral.” 

In the UK, money markets kept wagers on Bank of England interest-rate cuts broadly steady, seeing around a 40% chance of another reduction by year-end after inflation climbed for a second month in July. A full quarter-point cut had been expected earlier this month. Gilts rose, with the two-year yield falling four basis points at 3.93%. The pound fluctuated. 

Meanwhile, money markets treating a Fed quarter-point rate cut next month as a near certainty and pricing in at least one more before year-end. 

Investors are waiting to hear whether Powell will validate current market expectations or counter them by stressing that fresh economic data arriving before the next policy meeting could alter the outlook. They’re also scanning for hints about how the Fed foresees the pace of rate cuts extending into next year. 

“If we get an indication that they are more inclined to cutting interest rates, that will be more supportive again,” HSBC Head of APAC Equity Strategy Herald van der Linde said in a Bloomberg TV interview. 

What Bloomberg Strategists Say... 

“The selloff for Nvidia ahead its earnings next week is the biggest factor for global tech investors. Given that Nvidia is coming off a huge rally since April it looks like being a headwind for stocks in the days ahead.” 

—Mark Cranfield, MLIV 

Corporate News: 

• Swedish startup Mindler AB has acquired Ieso Digital Health UK for an undisclosed sum as it seeks to build out its footprint in the online therapy market. 
• Xiaomi Corp. intends to sell its first electric vehicle in Europe by 2027, declaring plans to take on Tesla Inc. and BYD Co. globally after gaining traction with its year-old Chinese EV business. 
• SBB, the firm at the center of Sweden’s property crisis two years ago, reported better-than-expected rental income in the second quarter thanks to growth in its residential segment. 
• Temasek Holdings Pte is mulling one of its biggest overhauls in years, potentially reorganizing the firm into three investment vehicles in a bid to boost returns and efficiencies, according to people familiar with the matter. 
• Shares of Chinese pop toy maker Pop Mart International Group Ltd. rose to a record after founder and Chief Executive Officer Wang Ning said the company could easily surpass its annual sales projection and announced plans to launch a new mini Labubu. 
• Baidu Inc.’s revenue fell, hurt by an economic downturn that’s capping its ability to fight bigger rivals in AI and make inroads in new growth areas. 

Some of the main moves in markets: 

Stocks 

• S&P 500 futures fell 0.1% as of 5:54 a.m. New York time 
• Nasdaq 100 futures fell 0.2% 
• Futures on the Dow Jones Industrial Average fell 0.2% 
• The Stoxx Europe 600 was little changed 
• The MSCI World Index was little changed 

Currencies 

• The Bloomberg Dollar Spot Index was little changed 
• The euro was little changed at $1.1646 
• The British pound was little changed at $1.3503 
• The Japanese yen rose 0.1% to 147.46 per dollar 

Cryptocurrencies 

• Bitcoin was little changed at $113,628.76 
• Ether rose 1.4% to $4,218.3 

Bonds 

• The yield on 10-year Treasuries was little changed at 4.30% 
• Germany’s 10-year yield declined two basis points to 2.73% 
• Britain’s 10-year yield declined four basis points to 4.70% 

Commodities 

• West Texas Intermediate crude rose 1% to $63 a barrel 
• Spot gold rose 0.3% to $3,326.75 an ounce 

This story was produced with the assistance of Bloomberg Automation. 

© 2025 Bloomberg L.P.