Overview

• Stocks closed lower Wednesday with the Dow up 0.04%, the Nasdaq down 0.67%, and the S&P 500 off 0.24%.
• All seven mega-cap tech names finished in the red as investors cited stretched valuations and a recent MIT report questioning near-term AI investment payoffs.
• Fed minutes from late July highlighted internal divisions and rising labor-market risks, while CME FedWatch shows traders largely expecting a September rate cut.
• Semiconductor shares fell after press reports said the U.S. may consider turning Chips Act subsidies into equity stakes, with Intel down 6.99%, TSMC 1.76% and Micron 3.97%.
• Target dropped after warning annual sales would decline and naming Michael Fiddelke as CEO effective Feb. 1, whereas TJX gained after topping quarterly expectations and lifting its outlook.