Dow Hits New High on Home Depot Boost, While Tech Drags Nasdaq Lower

Wall Street split paths Tuesday, with the Dow Jones Industrial Average powering to another record close while the Nasdaq stumbled under pressure from chipmakers.

The Dow gained 103 points, or 0.3%, landing at a fresh all-time high thanks largely to Home Depot, which popped nearly 4% after sticking to its full-year outlook despite weaker-than-expected earnings. Meanwhile, the Nasdaq sank 1.1%, weighed down by a slide in tech heavyweights. The S&P 500 dipped 0.3%.

The pain was sharpest in semiconductors. Nvidia dropped 2%, while AMD fell more than 4% and Broadcom slipped 2%. The VanEck Semiconductor ETF lost about 1%, showing just how much weight the chip sector carried. Other familiar tech names joined the retreat: Tesla, Meta, and Netflix all traded lower.

On the flip side, Home Depot’s rally gave the Dow its lift. Investors looked past the retailer’s rare double miss on revenue and profit, instead cheering management’s confidence in annual guidance. Rival Lowe’s reports Wednesday, followed by Target and Walmart later this week, meaning Wall Street will soon get a fuller read on the health of US consumers.

The market’s attention isn’t just on retail earnings, though. All eyes are on Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech on Friday. The Fed’s annual gathering in Wyoming has often been the stage for big policy signals. Traders are betting — with CME’s FedWatch tool putting odds near 83% — that Powell will hint at a September rate cut, a move that could reshape the rest of the year for markets.

“Friday’s Jackson Hole speech is likely an inflection point for markets,” said Stephen Schwartz of Pioneer Financial. “We think Powell will signal rate cuts are coming.”

Elsewhere, Intel shares jumped nearly 10% after SoftBank unveiled a $2 billion investment in the chipmaker, helping offset some of the broader tech gloom. Cybersecurity name Palo Alto Networks also surged 5% on strong earnings and upbeat guidance.

With indexes hovering near record levels, Wall Street looks set for a tense second half of the week: key retail earnings, new housing data, and Powell’s speech could all decide whether this rally keeps going or runs out of steam.

CNBC, the Wall Street Journal, Reuters, Bloomberg, and the Associated Press contributed to this report.