Tech Slump Weighs on Wall Street

Major Indices Declined :

S&P 500 (SPX): -0.64% to 6,460.25

Dow Jones (DJI): -0.20% to 45,544.88

Russell 2000 (RUT): -0.50% to 2,366.42

On August 29, 2025, major U.S. stock indexes declined, with the Dow Jones Industrial Average and S&P 500 each falling 0.2% and 0.6%, respectively, and the Nasdaq Composite dropping 1.2%, driven by a slump in tech stocks. Despite the daily losses, all indexes posted gains for August, marking four consecutive months of increases.

The Personal Consumption Expenditures report showed inflation steady at 2.6%, aligning with expectations but above the Federal Reserve’s 2% target, with potential rate cuts signaled for the next meeting.

On September 2, 2025, U.S. stock futures declined, signaling a weak start to September after Friday’s losses. Dow Jones futures fell 0.40%, S&P 500 futures dropped 0.46%, Nasdaq 100 futures slid 0.60%, and Russell 2000 futures decreased 0.72%. President Trump’s warning that $15 trillion in planned U.S. investments could be canceled if his tariff policies are struck down, following a court ruling against their constitutionality, contributed to market unease.

Tech giants like Nvidia, Broadcom, and Tesla saw declines over 3%, with the PHLX Semiconductor Index dropping more than 3%. Marvell Technology plunged 18% after a weak sales outlook, and Dell Technologies fell 8.9% due to disappointing profit guidance despite strong AI-driven results. Conversely, Autodesk surged 9.1% on robust AI data center demand, and Affirm jumped 10.6% after strong earnings. SentinelOne rose 7% due to high demand for AI-driven cybersecurity solutions.

PepsiCo increased its stake in Celsius Holdings to 11% for $585 million, boosting Celsius shares 5%. Alibaba’s stock rose 13% amid reports of a new advanced AI chip. Caterpillar led Dow decliners, falling 3.6% after warning of higher tariff costs impacting its 2025 results.

9:45 am- S&P final U.S. manufacturing PMI (Aug)

10:00 am- ISM manufacturing (Aug) and Construction spending (July)

The Dow declined 0.20%, closing at 45,544.88. Key resistance sits at 45,665.91; staying below may trigger a decline toward 45,370.57 and 45,281.83.

The index ended at 23,415.42. Key resistance is at 23,543.05; staying below may trigger a decline toward 23,303.23 and 23,226.43.

The S&P 500 closed at 6,460.26, below the resistance level of 6,479.47. If buyers cannot break through this barrier, potential downside targets include 6,450.26 and 6,440.48.

SPY was trading at $639.97 pre-market, with resistance at $641.80 and potential downside targets at $639.13 and $638.07.

QQQ was trading at $564.88 pre-market, with key resistance at $566.40. Failure to break above this level could lead to downside targets at $562.79 and $561.98.

IWM was trading at $232.85 pre-market, with key resistance at $234.87. Failure to break above this level could lead to downside targets at $231.86 and $230.57.

SMH was trading at $285.32 pre-market, with key resistance at $286.12. Failure to break above this level could lead to downside targets at $284 and $282.65.

SOXL was trading at $24.66 in pre-market, struggling to surpass resistance at $24.785. If it remains below this level, it could decline toward support levels at $24.538 and $24.245.

Revenue & Profitability- Total revenues reached RMB19.0 billion (US$2.65 billion), up 9.0% YoY. Vehicle margin was 10.3%, slightly down from 12.2% a year earlier. Gross margin improved to 10.0%. Net loss narrowed to RMB4.99 billion (US$697 million), down 1.0% YoY. Cash and equivalents stood at RMB27.2 billion (US$3.8 billion) as of June 30, 2025.

Vehicle Deliveries- 72,056 units delivered in Q2 2025, up 25.6% year-over-year and 71.2% from Q1 2025.

New Product Launches- Launched the ONVO L90 SUV and All-New ES8, with deliveries starting in mid-2025.

Strategic Investment- Invested an additional RMB20 billion to increase ownership in NIO China to 91.8%.

Outlook- Q3 2025 delivery guidance is 87,000 to 91,000 vehicles, reflecting 40.7% to 47.1% growth over last year, with revenues expected to rise 16.8% to 22.5%.

NIO was trading at $6.36 pre-market. Support is at $6.30, while the potential upside levels stand at $6.475 and $6.53.

Q2 Earnings Expectations- Analysts forecast $2.14 EPS for Q2 2025 (up 4.4% YoY) with revenue at $1.61B. Some firms trimmed targets due to macro risks. Uneven revisions reflect optimism for growth but caution over economic headwinds.

Divisional Sales Trends- Outdoors Strength: Projected 10.2% YoY growth to $431.73M, driven by active lifestyle trends. Sports and Recreation expected to decline 4.8% to $382.84M; Apparel down 1.6% to $429.69M. Footwear growth of 3.1% to $321.82M shows resilience. ASO is rebalancing toward high-growth Outdoors to offset weaker segments.

Financial Health- Q1 2025 showed 5.7% asset growth to $5.18B, 11.6% liability reduction to $3.23B, but cash dropped 24.6% to $285.1M. Debt-to-equity ratio at 0.94; inventories up 15% to $1.56B, posing margin risks. Supply chain diversification and five new stores in Q1 2025 aim to stabilize cash flow and reduce reliance on volatile segments.

Investment Outlook- Low valuation and Outdoors growth suggest potential for re-rating, but Q1 earnings miss and cash flow issues warrant caution. Investors should watch Q2 results on September 2, 2025, for inventory management and sustained Outdoors growth to assess long-term potential.

ASO was trading at $54.56 pre-market. Support is at $54.12, while the potential upside levels stand at $54.93 and $55.24.

Earnings Expectations- Analysts expect Zscaler to report $707.7M in revenue for the quarter, a 19.4% YoY increase, slower than last year’s 30.3% growth. Adjusted EPS projected at $0.80.

Recent Performance- Last quarter, Zscaler reported $678M in revenue (up 22.6% YoY), beating estimates by 1.6%, with strong full-year EPS guidance and annual recurring revenue performance.

Outlook- Zscaler’s earnings report on September 2, 2025, will be closely watched for signs of sustained growth in the cybersecurity sector, with investors optimistic but cautious due to the stock’s recent underperformance.

ZS was trading at $282.80 pre-market. Support is at $280.90, while the potential upside levels stand at $283.61 and $284.78.

Earnings Expectations- Analysts anticipate HealthEquity to report 92 cents per share in earnings for Q2 2025, up from 86 cents in the prior year, with revenue expected at $320.69M, compared to $299.93M last year.

Recent Performance- In Q1 2025, HealthEquity reported 97 cents per share, beating estimates of 88 cents, with revenue of $330.8M surpassing the $321.17M forecast.

Outlook- HealthEquity’s earnings report on September 2, 2025, after the market close will be closely watched, with analysts optimistic due to strong Q1 performance and upward revisions in price targets, signaling confidence in the company’s growth in the health savings account and benefits administration sector.

HQY was trading at $89.90 pre-market. Support is at $89.10, while the potential upside levels stand at $90.77 and $91.70.