Palantir, AI Stocks Extend Losses Ahead Fed Minutes: What's Moving Markets Wednesday?

A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.

• MAGS ETF is moving fast. Check live prices here.

Shares of Palantir Technologies Inc. PLTR — a poster child of the AI-driven rally — fell another 4% by midday, paring steeper early losses. The drop followed Tuesday's 9.4% plunge, marking the stock's worst two-day slump since April.

• The Nasdaq 100 slid about 1%, underperforming other major indexes
• The S&P 500 eased 0.46%
• The Russell 2000 lost 0.56%
• The Dow Jones dipped 0.12%

Investors now await the release of the Fed's July meeting minutes, due at 2:00 p.m. ET. Last month, Governors Bowman and Waller dissented in favor of a rate cut, opposing the majority who voted to keep rates unchanged.

Meanwhile, President Trump called for the resignation of Democratic-appointed Fed Governor Lisa Cook. U.S. Federal Housing Finance Agency director William Pulte alleged in a letter to Attorney General Pam Bondi that Cook “potentially” committed mortgage fraud.

Traders are currently pricing in an 85% chance of a 25-basis-point cut next month.

Commodities rebounded from Tuesday's sharp selloff, with gold, silver, and crude oil each rising about 1%. Cryptocurrencies also found support, with Bitcoin BTC/USD up 0.9% after two straight sessions of losses.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF VOO eased 0.4% to $585.57.
• The SPDR Dow Jones Industrial Average DIA paused at $449.29.
• The tech-heavy Invesco QQQ Trust Series QQQ dropped 0.9% to $564.81.
• The iShares Russell 2000 ETF IWM fell 0.5% to $225.12.
• The Energy Select Sector SPDR Fund XLE outperformed, up 0.9%; the Technology Select Sector SPDR Fund XLK lagged, down 1%.

Stocks On The Move Wednesday

• Target Corp. TGT sank 7% despite topping Wall Street's earnings estimates, as weak sales guidance weighed on shares.
• Other earnings movers included Lowe's Companies Inc. LOW, up 0.6%; Estee Lauder Companies Inc. EL, down 3.6%; Analog Devices Inc. ADI, up 4.8%; Toll Brothers Inc. TOL, up 1%; Alcon Inc. ALC, down 9%; and Hertz Global Holdings Inc. HTZ, up 5.5%.
• After the close, earnings are due from Salesforce Inc. CRM and Synopsys Inc. SNPS.

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