Finance

U.S. stock indexes trended lower as investors braced for a critical interest rate verdict from the Federal Reserve under Chairman Kevin Warsh. The market remains highly sensitive to potential hawkish messaging or surprise adjustments from the central bank amid persistent inflationary pressures.

The tech-heavy Nasdaq 100 has shifted back toward correction territory, sitting roughly 10% below its recent peak from early June. A continuous pullback in semiconductor names and soft financial results from international chip suppliers have compounded anxieties surrounding corporate spending on artificial intelligence infrastructure.

Despite immediate downward pressures across major indices, underlying market dynamics show that capital is actively rotating away from high-flying mega-cap tech companies. Defensive allocations like healthcare, consumer staples, and financials have notably outpaced growth equities as investors seek value outside of the tech sector.