US STOCKS-Wall Street falls on Jackson Hole jitters

Indexes: Dow flat, S&P 500 down 0.53%, Nasdaq 1.27%

Tech stocks fall, with Nvidia down over 3%

Home Depot up after retaining annual forecasts

Intel jumps on SoftBank investment

Palo Alto Networks forecasts strong fiscal 2026 revenue and profit

(Updates stocks percentage moves)

By Johann M Cherian, Sanchayaita Roy and Carolina Mandl

Aug 19 (Reuters) -

U.S. stocks dipped on Tuesday as investors gear up for what Federal Reserve chair Jerome Powell will say about the path of interest rates at a key conference later in the week.

The Nasdaq slid more than 1% to its lowest in over two weeks as megacaps Nvidia (NVDA.O) and Microsoft (MSFT.O) lost 3.37% and 1.22%, having rallied for much of the year.

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

“There’s an anxiety about Powell’s comments at Jackson Hole,” said Ross Mayfield, investment strategist at Baird Private Wealth Management. “Some investors fear the Fed is going to be a bit behind the curve and higher interest rates have a big impact on growth stocks.”

Also on the policy front, remarks from Fed Vice Chair for Supervision Michelle Bowman are due later in the day.

Bowman, who is

under consideration

for the central bank’s top job when Chair Jerome Powell’s term ends next year, has voiced support for

at least three

interest rate cuts this year, in line with President Donald Trump’s calls for lower borrowing costs.

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.

At 01:45 p.m. the Dow Jones Industrial Average (.DJI) fell 0.59 points, roughly flat, to 44,911.23, the S&P 500 (.SPX) lost 34.25 points, or 0.53%, to 6,414.90 and the Nasdaq Composite (.IXIC) lost 275.31 points, or 1.27%, to 21,354.46.

Six of the 11 S&P 500 sectors edged up. Real estate (.SPLRCR) led with a 1.4% rise, helped by better-than-expected

housing data

.

On the other hand, technology (.SPLRCT) and communications services (.SPLRCL) lost over 1.5% and 1.2%, respectively.

The blue-chip Dow briefly hit a record high on Tuesday, aided by a rise in Home Depot’s shares after the retailer kept its annual forecasts intact.

Home Depot (HD.N) rose 3.35% despite

missing

quarterly results estimates, while rival home-improvement chain Lowe’s (LOW.N) gained 2%.

Earnings from Lowe’s and big-box retailers Walmart (WMT.N) and Target (TGT.N) later this week are now in focus as investors await more insight on the health of the American consumer.

“Consumers are still not really spending at full speed ahead, they’re a little bit cautious,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

“They’re waiting to see the full results of the tariffs impact on the upcoming holiday sales in a couple of months from now.”

Intel (INTC.O) jumped 8.5% to hit its highest since February after the chipmaker got a $2 billion

capital injection

from Japan’s SoftBank Group (9984.T) .

Palo Alto Networks (PANW.O) surged 3.5% after the cybersecurity

company forecast

fiscal 2026 revenue and profit above estimates.

Medtronic (MDT.N) lost 3.5%. The company said it would

add two new directors

to its board after Elliott Investment Management took a large stake in the medical-device maker.

Advancing issues outnumbered decliners by a 1.06-to-1 ratio on the NYSE. There were 168 new highs and 48 new lows on the NYSE.

The S&P 500 posted 11 new 52-week highs and one new low while the Nasdaq Composite recorded 51 new highs and 65 new lows.