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Indexes off: Dow 0.04%, S&P 500 0.62%, Nasdaq 1.28%

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Nasdaq hits two-week low, S&P 500 slips to over one-week

low

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Target ( TGT ) down after reaffirming annual forecast

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Estee Lauder ( EL ) down after forecasting annual profit below

estimates

(Updates to after market open)

By Johann M Cherian and Sanchayaita Roy

Aug 20 (Reuters) - Wall Street's main indexes declined

on Wednesday and the Nasdaq hit a two-week low as a rally in

technology stocks cooled and caution prevailed ahead of the

Federal Reserve's highly anticipated Jackson Hole symposium

later this week

After driving much of the market's recovery from the April

selloff, tech stocks are pulling back as investors reassess high

valuations in the sector. The S&P 500 technology index

slid 1.7% on the day.

Deepening concerns of government interference with

companies, sources said the Trump administration was looking

into taking equity stakes in chip companies such as Intel ( INTC ) in

exchange for grants under the CHIPS Act - just weeks after

unprecedented revenue-sharing deals with Nvidia ( NVDA ) and AMD.

Nvidia ( NVDA ) slid 2.8% and Advanced Micro Devices ( AMD )

lost 3%, while Intel ( INTC ) and Micron fell

about 6% each. Nvidia's ( NVDA ) quarterly results on Aug. 27 are keenly

awaited for clues on demand for artificial intelligence.

Other megacap growth names such as Apple and

Meta also came under pressure, falling 1.4% and 2.3%,

respectively.

"To see a little pullback here after a big move up is

perfectly normal and healthy," said Adam Sarhan, chief executive

of 50 Park Investments in New York.

"If the selling gets worse then you'll see a rotation out of

tech and into undervalued areas of the market like biotech or

healthcare stocks or small-cap stocks."

At 10:04 a.m. ET, the Dow Jones Industrial Average

fell 17.55 points, or 0.04%, to 44,904.72, the S&P 500

lost 39.62 points, or 0.62%, to 6,371.75 and the Nasdaq

Composite lost 272.45 points, or 1.28%, to 21,042.50.

The S&P 500 and the Nasdaq marked their worst session in

over two weeks on Tuesday following a similar tech selloff.

Minutes from the Fed's July meeting, where interest rates

were left unchanged, are expected at 2:00 p.m. ET. It could set

the tone before the central bank's annual conference in Jackson

Hole, Wyoming, between August 21 and 23.

Chair Jerome Powell is expected to speak on Friday and his

remarks will be scrutinized for insight on monetary policy, even

as investors price in a 25-basis-point interest rate cut in

September, according to data compiled by LSEG.

Remarks from Governor Christopher Waller and Atlanta Fed

President Raphael Bostic are expected later in the day.

Investors also monitored

allegations

that Fed Governor Lisa Cook was involved in mortgage fraud.

Earnings from big retailers, seen as a barometer for the

health of the American consumer, are also in the spotlight this

week as sentiment has taken a hit from concerns that tariffs

could drive prices higher.

Target ( TGT ) plunged 8.2% after the company named a new

CEO and retained its annual forecasts that were lowered in May

due to weak demand for the discretionary merchandise it sells.

Cosmetics giant Estee Lauder ( EL ) fell 2.5% after

tariff-related headwinds weighed on its annual profit forecast.

On the trade front, the Commerce Department slapped 50%

import levies on more than 400 "derivative" steel and aluminum

products.

Advancing issues outnumbered decliners by a 1.04-to-1 ratio

on the NYSE. Declining issues outnumbered advancers by a

1.61-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and no new lows

while the Nasdaq Composite recorded 17 new highs and 75 new

lows.