Nasdaq, S&P 500 plunge on weak tech stocks as Nvidia shares drop 3.5%

THE NASDAQ and S&P 500 slid on Tuesday driven by tech stocks, as investors gear up for what US Federal Reserve chair Jerome H. Powell will say about the path of interest rates at a key conference later in the week.

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The Nasdaq fell as megacaps lost, after having rallied for much of the year. Nvidia fell 3.5%, the biggest drop in nearly four months.

The key event this week is the Fed’s annual symposium at Jackson Hole, Wyoming, from Aug. 21-23, where Mr. Powell's comments will be scrutinized for any clues on the central bank’s outlook on the economy and monetary policy.

“It seems like folks are hedging a little going into Jackson Hole, thinking Powell might be more hawkish than markets currently appreciate,” said James Cox, managing partner at Harris Financial Group.

Interest rate futures point to a total of two rate cuts this year worth 25 basis points each, with the first expected in September, according to data compiled by LSEG.

Some market participants also expressed some concerns about artificial intelligence-related stocks after OpenAl’s Chief Executive Officer Sam Altman said they are in a bubble in an interview with The Verge late last week.