Mei Ri Jing Ji Xin Wen·2025-08-20 16:51Market Overview - On August 20, US tech stocks experienced a significant decline, with the Nasdaq Composite dropping nearly 2% and falling below 21,000 points for the first time since August 7 [1] - The Philadelphia Semiconductor Index plummeted over 3%, with Nvidia dropping nearly 4% [1] - The VIX, known as the "fear index," surged over 10% during this period [1] Individual Stock Performance - Major tech stocks saw widespread losses, including Apple down 1.54%, Tesla down 2.68%, Amazon down 1.97%, Facebook down 1.24%, Google down 1.16%, Nvidia down 1.54%, and Microsoft down 0.77% [3][4] - The Philadelphia Semiconductor Index fell by 1.79%, with Intel dropping over 6% and Micron Technology down over 5% [4] Options Market Activity - Wall Street traders are increasingly purchasing put options to hedge against the risk of further declines in tech stocks, particularly those tracking the Nasdaq 100 Index [7] - The cost of hedging against significant declines has reached near three-year highs, indicating heightened concern among traders [7] Economic Indicators and Predictions - Analysts suggest that potential triggers for further declines include the upcoming Jackson Hole Global Central Bank Conference and Nvidia's earnings report [8] - Concerns are growing that the current market trends resemble the late 1990s internet bubble, with fears of a similar downturn [8] - The market anticipates that the Federal Reserve may not be able to implement significant rate cuts as previously expected, which could halt the upward momentum of major tech stocks [8] Federal Reserve Outlook - The Federal Reserve is expected to release the minutes from its July meeting, and Chairman Powell will speak at the Jackson Hole conference, which could signal future policy directions [10][11] - Current market expectations suggest a 51.5% probability of a 25 basis point rate cut in October and a 38.8% chance of another cut in December [11][12]