Tech Stocks Drag Markets Lower as Fed Policy Uncertainty Lingers

Wall Street's tech rout deepened Wednesday, with the Nasdaq Composite sliding 0.7% as investors rotated out of Big Tech amid AI spending concerns. Futures pointed to further weakness Thursday, with Dow and S&P 500 contracts dipping 0.1% while Nasdaq futures treaded water.

Federal Reserve minutes revealed most officials remain fixated on stubborn inflation despite emerging labor market softness. The central bank appears poised to hold rates steady in July, though two dissenters favored action. All eyes now turn to Fed Chair Jerome Powell's Jackson Hole speech Friday for clues on the timing of potential rate cuts.

Retail earnings season culminates with Walmart's report Thursday, following mixed results from Home Depot and Target earlier this week. The sector's performance may signal whether consumer resilience can offset tech sector weakness.