By John Meyer, consultant in financial affairs – Eurasia Business News, August 20, 2025. Article no. 1730
The Nasdaq Composite has continued to fall, marking a second consecutive day of decline in technology stocks. On August 20, 2025, the Nasdaq slipped roughly 0.4% following a 1.5% drop the previous day. This decline is partly driven by concerns surrounding the artificial intelligence (AI) sector, with some investors worried about a potential bubble highlighted by OpenAI’s CEO Sam Altman.
Major tech stocks, including Palantir, Micron, and Nvidia, have seen significant losses. Some market participants also point to the market’s prior strong run, with the Nasdaq gaining 9% this year and reaching multiple all-time highs, suggesting a needed correction.
Traders said there was no one catalyst for the selloff but pointed to a few possible culprits, including recent comments from OpenAI Chief Executive Sam Altman suggesting the artificial-intelligence boom has some bubble-like characteristics.
Some investors said the sector was due for at least a modest fall. The Nasdaq is up 9% for the year and has had 20 record closes in 2025.
This tech selloff comes ahead of Federal Reserve Chair Jerome Powell’s important upcoming speech at the Jackson Hole conference, where investors hope for clarity on interest rate trajectories. The overall market sentiment is cautious as the Fed is expected to eventually initiate rate cuts later in the year, with the first expected in September.
In contrast, the Dow Jones Industrial Average showed a slight gain recently, buoyed by strong performances in sectors like home improvement, led by Home Depot. However, the broader indices like the S&P 500 and Nasdaq are under pressure from the tech sector declines, with the Nasdaq showing some of the steepest losses.
Read also : Gold : Build Your Wealth and Freedom
The gold market continues to trade below initial resistance at $3,350 an ounce as the Federal Reserve tries to extend the clock, saying it needs more time to evaluate the health of the U.S. labor market and the trajectory of inflation, according to the minutes from the July monetary policy meeting.
Bitcoin is trading around $113,600 to $114,000 today. The price is currently near $113,633. This reflects a slight correction after recent all-time highs, with the market showing short-term fatigue but maintaining a medium and long-term uptrend. Key resistance remains at the all-time high of about $124,533, and important support levels are around $111,900 and lower. Market sentiment shows some caution, and investors are watching critical technical levels amid uncertainty about upcoming Federal Reserve rate decisions.
Meanwhile, President Trump opened a new front in his battle with the Federal Reserve, calling on governor Lisa Cook to resign after his housing-finance chief, Bill Pulte, accused the Biden appointee of mortgage fraud. Minutes from the Fed’s July meeting suggested officials were divided over when they could be confident that higher import costs wouldn’t lead to a period of broader, rolling price hikes.
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