How have tech shares been performing recently?

The article states that tech shares have been losing steam and dragging broader indexes lower, with the S&P 500 tech sector down nearly 5% in the last five trading days. This is attributed to a combination of rotation, unease over the megacap concentration, and doubts about the huge AI spend.

What concerns are investors expressing about the Trump administration's involvement in economic policy?

Investors are increasingly worried about the "interference" from President Donald Trump and his administration in various aspects of the economy, private sector business, and independent policymaking, including the President's call for a Fed Governor's resignation and the Commerce Secretary's reported plans to take equity stakes in chipmakers.

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Fed Chair Powell's Jackson Hole Speech Triggers Market Turmoil

Q: What impact will Fed Chair Jerome Powell's Jackson Hole speech have on the markets?

Powell's Jackson Hole speeches have historically moved markets significantly, with the 10-year Treasury yield rising by an average of 21 basis points in the month following each of his last seven speeches, and the S&P 500 falling nearly 2% on average over the same period.

20 Aug

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Summary

Investors brace for Fed Chair Powell's speech at Jackson Hole
Tech shares slide amid doubts over AI frenzy
Trump administration's interference in economic policy concerns investors

Fed Chair Powell's Jackson Hole Speech Triggers Market Turmoil

As of August 20th, 2025, investors are closely watching the markets, bracing for the impact of Fed Chair Jerome Powell's upcoming speech at the Jackson Hole symposium on August 25th. The article notes that the tech sector has been facing a sell-off, with the Nasdaq shedding 0.7% on the day, as doubts continue to weigh on the frenzy surrounding artificial intelligence.

Alongside the tech woes, the article highlights the growing concern among investors about the involvement and "interference" of the Trump administration in various aspects of the economy, private sector, and independent policymaking. This includes the President's call for the resignation of Fed Governor Lisa Cook over mortgage allegations, as well as the Commerce Secretary's reported plans to explore the government taking equity stakes in Intel and other chipmakers in exchange for grants under the CHIPS Act.

The article suggests that Powell's speech at Jackson Hole could have a significant impact on the markets, as investors are heavily betting on a rate cut by the Federal Reserve at its September meeting. The author notes that if Powell holds the line and signals that policymakers need to see more data before resuming the easing cycle, it could trigger a "pain trade" for investors.

The article also provides historical context, noting that Powell's previous Jackson Hole speeches have tended to move markets, especially the bond market, with the 10-year Treasury yield rising by an average of 21 basis points in the month following each of his last seven speeches. The S&P 500 has also fallen nearly 2% on average over the same period.

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