Tech Stocks Drag Markets Lower as Investors Await Retail Earnings and Fed Signals

US equity futures declined Wednesday following a tech sector rout, with Nasdaq 100 contracts leading losses as Nvidia and Palantir extended their retreat. The Dow and S&P 500 futures each slipped 0.2%, reflecting growing investor rotation out of megacap tech into resurgent cyclical sectors.

Retail earnings take center stage this week, with Home Depot already posting improved US sales. Market participants now await Target and Walmart results for clues on consumer resilience amid escalating trade tensions. Walmart's previous tariff warnings drew a fiery response from the WHITE House, underscoring the political volatility surrounding trade policy.

All eyes turn to Jackson Hole on Friday as Fed Chair Powell's address could reshape rate cut expectations. The symposium comes amid mounting pressure for central bank action to counter economic headwinds, with markets parsing every utterance for policy signals.