Nvidia slides as Nasdaq drops, dollar climbs before Fed

Nvidia fell 3.5% on Tuesday, leading the Nasdaq lower by 1.46% as pressure on large US technology stocks weighed on indices. In currency markets, the dollar strengthened for a third session, with the euro at $1.1638, sterling at $1.3480 and the New Zealand dollar slipping to $0.5820 after a dovish RBNZ rate cut. Spot gold hovered near a three-week low at $3,321.83 per ounce, while Brent crude traded at $66.29 after BP said storms disrupted operations at its Whiting refinery in Indiana.

Equities

The FTSE 100 rose 0.3% on Tuesday, supported by gains in banks and consumer stocks, although aerospace and defence shares fell back. The mid-cap FTSE 250 also closed higher, up 0.4%, ending a three-day losing run. JD Sports closed 7% higher after Deutsche Bank lifted its price target, helping to drive the personal goods index up 4.7%. Metro Bank added 5.3% after RBC Capital Markets upgraded the stock to “outperform” from “sector perform”.

International Workplace Group closed 12.8% lower, its sharpest single-day fall since March 2020, after warning that annual adjusted core profit would likely be at the bottom end of guidance. The aerospace and defence sector dropped 2.8%, its steepest decline since April, as investors locked in profits following strong gains earlier this year.

In the United States, the Nasdaq Composite closed down 1.46% on Tuesday, while the S&P 500 fell 0.59%. The Dow Jones Industrial Average was little changed, ending the day up 10.45 points. Nvidia shed 3.5%, its biggest one-day fall in nearly four months. Intel stood out, climbing about 7% after SoftBank announced a $2 billion investment in the chipmaker. Palo Alto Networks gained just over 3% after forecasting fiscal 2026 revenue and profit above Wall Street estimates.

Home Depot shares rose 3.17% after the company reaffirmed its annual forecasts, even though quarterly results missed expectations. Its rival Lowe’s added 2.18% ahead of its own results later this week. Retailers Walmart and Target are also due to report shortly, with investors looking for more signs of consumer spending strength.

Medtronic fell 3.13% after announcing that it would add two new directors to its board following a large stake taken by activist investor Elliott Investment Management. On the sector level, technology and communication services led the losses, with declines of more than 1.9% and 1.2% respectively, while real estate stocks advanced 1.8% on the back of stronger housing data.

Forex & Commodities

The US dollar strengthened for a third straight session on Wednesday, pushing higher against the euro and sterling as traders awaited Jerome Powell’s comments at the Federal Reserve’s Jackson Hole symposium later this week. The euro slipped to $1.1638 and sterling eased to $1.3480, while the greenback also firmed to CHF0.8080. Against the yen it edged lower to ¥147.46. The dollar index rose to 98.44, its highest since 12 August.

The New Zealand dollar dropped sharply after the Reserve Bank of New Zealand cut its cash rate by a quarter point to 3.0% and signalled that deeper reductions remain under consideration. The kiwi fell to $0.5820, its weakest level since 14 April. Policymakers also lowered their projected floor for the cash rate to 2.55%, down from 2.85% in May, increasing expectations for further easing this year.

Spot gold was trading at $3,321.83 per ounce early on Wednesday, slightly higher on the day but close to its lowest level since 1 August. Prices remain under pressure from the stronger dollar, which makes gold more expensive for buyers using other currencies. Silver slipped to $37.20 per ounce, platinum rose to $1,314.25 and palladium fell to $1,108.25.

Oil prices moved higher on Wednesday morning, with Brent crude at $66.29 a barrel and US West Texas Intermediate September futures at $62.80. The more active October WTI contract was at $62.30. This followed a decline of more than 1% on Tuesday when signs of progress in Ukraine peace talks suggested that sanctions on Russian oil could eventually ease. BP said late on Tuesday that flooding from severe storms had disrupted operations at its Whiting refinery in Indiana, a 440,000-barrel-per-day facility and a major fuel supplier to the Midwest.