Nasdaq, S&P 500 end lower as investors sell tech, buy less pricey sectors
By Johann M Cherian, Sanchayaita Roy and Carolina
Mandl
Wed August 20, 2025 5:07 PM
The rotation away from highly overvalued tech stocks to quality undervalued stocks in other sectors continued today but not without its bumps as choppy trading dominated, the Dow down 150 at one point, the Nasdaq down 400. Everybody’s looking to Powell’s remarks at Jackson Hole on Friday and to more of the major retailers reporting in the next two days to gauge the health of consumer spending and by extension the health of the economy.
So the sell-off has been really a healthy move to deflate the bloated tech sector and inflate other sectors. As today’s expert put it, “There are a lot of pockets of the market that look very attractive from a valuation standpoint and have been broadly ignored.” Another factor contributing to the rotation is the recent data suggesting that AI is “in a bubble.” Per the CBOE, volume came in at 15.8 billion, again well below the 18.2 average.
DJ: 44,922.27 +10.45 NAS: 21,314.95
-314.82 S&P: 6,411.37
-37.78 8/19
DJ: 44,938.31 +16.04 NAS: 21,172.86 -142.09 S&P: 6,395.78 -15.59 8/20
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