TL;DR

Tech-led US equity selloff ahead of Powell; Target, Estée Lauder, James Hardie warn on outlooks.

Highlights

• • Nasdaq fell 1.5% and S&P 500 dropped 0.6% as tech stocks sold off before Powell’s Jackson Hole speech; Nvidia down 3.5%, VIX up 12.
• • Asian tech stocks followed suit; Nikkei 225 fell 1.8%, SoftBank down 9% after Intel investment gains erased 25.
• • Target named Michael Fiddelke as incoming CEO; Q2 sales fell 0.9%, shares down 9–11% pre-market on weak guidance 3.
• • Estée Lauder shares slid up to 14% after soft profit outlook and tariff headwinds; annual sales and net income declined 4.
• • James Hardie dropped 30% in Sydney after cutting profit outlook on US housing slowdown; signals broader construction weakness 13.
• • UK July inflation rose to 3.8%, above expectations, complicating further Bank of England rate cuts 6.
• • RBNZ cut rates to 3%, signaled more easing; NZD fell 1.2% vs. USD 7.
• • US-China tariff truce extended 90 days; talks may resume before November, but export uncertainty lingers 8.
• • ECB’s Lagarde flagged euro-area growth slowdown as US-EU tariffs take effect; ECB likely to hold rates in September 17.
• • Amazon to launch Android-based Fire tablet, targeting higher-end market and broader app support 11.
• • Bitcoin topped $113,000; Circle minted $1.25B USDC on Solana, boosting stablecoin activity 1415.
• • Israel mobilized 60,000 reservists for expanded Gaza operation; regional tensions persist 9.

Commentary

US equity markets are under pressure, with tech stocks leading declines ahead of Fed Chair Powell’s Jackson Hole speech. The Nasdaq ’s 1.5% drop, driven by Nvidia ’s 3.5% slide, has set a cautious tone globally, mirrored by steep losses in Asian tech names and a spike in VIX volatility 12. The market is firmly focused on the Fed’s policy outlook, with rate futures implying two cuts by year-end but uncertainty high as traders await Powell’s comments and the release of July FOMC minutes 12.

Consumer and retail sentiment remains fragile. Target ’s Q2 results showed ongoing sales weakness and a cautious full-year outlook, sending shares sharply lower pre-market 3. Estée Lauder ’s disappointing guidance and tariff-related pressures triggered a double-digit stock decline 4, while James Hardie’s outlook cut and 30% share drop highlight persistent softness in US housing and construction 13. These signals suggest continued headwinds for discretionary and cyclical sectors.

On the macro front, diverging global monetary policy is in focus. The Bank of England faces renewed inflation pressure after a hotter-than-expected CPI print 6, while the RBNZ’s rate cut and dovish guidance weighed on the New Zealand dollar 7. The ECB is signaling a hold as euro-area growth slows under the weight of new US-EU tariffs, with sector-specific levies unresolved 17. The US-China tariff truce extension has temporarily eased trade tensions, but uncertainty for exporters—especially in agriculture—persists 8.

In digital assets, Bitcoin ’s rally above $113,000 14 and robust stablecoin issuance (notably USDC on Solana) underscore ongoing institutional and retail demand for crypto, even as traditional markets wobble 15. Amazon ’s planned shift to Android for its Fire tablet signals a push for competitiveness in consumer tech 11. Geopolitical risk remains elevated with Israel’s Gaza mobilization, though direct market impact is limited for now 9.

Traders should monitor Powell’s Jackson Hole remarks, retail earnings, and any escalation in trade or geopolitical tensions. Watch for continued volatility in tech, housing, and consumer names, and stay alert to FX and rates shifts as central bank signals evolve.