Nasdaq Index: Tech Stocks Slip as Warsh Reprices the Fed Forecast

• Nvidia dropped 4.6% one day after a 9% earnings rally as buyers refused to chase higher prices following Warsh's rate hike signal; Marvell plunged 10.3% on a narrow margin miss, exposing razor-thin tolerance for disappointment in AI chip stocks
• September Fed rate hike odds jumped from 35% to 58% after Warsh stated financial conditions 'do not look restrictive,' causing the 2-year Treasury yield to climb to 4.35% and triggering a repricing across tech sectors
• Software earnings provided support as Elastic surged 17% and Workday beat estimates, while Amazon gained 4% on an upgrade citing AI-driven retail purchases; however, megacap strength in Amazon, Alphabet, and Apple masked broader weakness across semiconductors and smaller tech names

Market Summary: Tech Stocks Decline on Fed Rate Hike Concerns

Key Developments

The Nasdaq Composite fell 138.93 points (-0.52%) to close at 26,402.42 on August 30, 2026, as Federal Reserve official Warsh's hawkish comments triggered a sharp repricing of interest rate expectations. September rate hike odds jumped from 35% to 58% following Warsh's speech, while the 2-year Treasury yield climbed to 4.35%.

Major Stock Movements

Nvidia surrendered its previous day's 9% earnings rally, declining 4.6% despite beating all estimates, signaling buyer reluctance to chase higher prices amid rate concerns. Marvell Technology plunged 10.3% on narrow margin misses and AI chip revenue timing questions related to Google, exposing minimal tolerance for disappointment in the semiconductor sector.

Conversely, software companies demonstrated resilience: Elastic surged over 17% on strong guidance, Workday posted adjusted earnings of $2.75 per share, and Salesforce extended gains on raised guidance and strategic investment gains. ServiceNow maintained its $1.5 billion full-year AI revenue target.

Megacap stocks provided support, with Amazon gaining 4% after Evercore ISI raised its price target to $355 (from $315) citing AI-driven retail purchases. Alphabet rose 1.7% and Apple added 1.6%.

Market Implications

The Nasdaq posted a potentially bearish reversal pattern near 26,700, testing critical support at 26,393 (50% retracement level). A sustained break below could trigger declines toward the 50-day moving average at 25,959 or lower support zones at 25,650-25,361.

The September 16 Fed meeting now represents the critical catalyst, with all employment and inflation data between now and then likely to drive market direction. The semiconductor sector faces heightened vulnerability if rate hike expectations continue building.