U.S. stock markets ended mostly lower on Wednesday as the technology sector remained under pressure as investors watched retail sales and weighed the prospects for a rate cut by the Federal Reserve.

The S&P 500 fell 0.2% to 6,395.78, the tech-heavy Nasdaq Composite fell 0.7% to 21,172.86, and the Dow Jones Industrial Average was almost unchanged at 44,938.31.

The decline in tech companies comes as markets hit levels where many stocks are “overbought,” after weeks of record highs, said Tim Urbanovich of Innovator Capital Management.

“We still think the long-term trend remains solid,” he added.
Among the big tech companies, Nvidia lost 0.1%, AMD fell 0.8% and Broadcom fell 1.3%.

Investors also looked at financial reports from retailers Target and Lowe’s. Target’s sales fell and its shares closed down more than 6%, while Lowe’s beat expectations and rose 0.3%.

Markets are closely watching the health of the retail sector, assessing the effects of President Donald Trump’s tariffs on inflation and the broader economy.

Meanwhile, minutes from the Fed’s last meeting in July showed that most officials viewed the risks to inflation as more serious than those to employment, which is why the central bank kept interest rates unchanged, despite two notable disagreements.

Investors are now turning their attention to Friday's speech by Fed Chairman Jerome Powell at the central bankers' meeting, where signals about future interest rate policy are expected. | BGNES, AFP