Minneapolis Fed President Neel Kashkari called for the Federal Reserve to raise interest rates immediately, advocating for a 25 basis point hike. Kashkari, one of three officials who dissented from last week's decision to hold rates steady, warned that delaying action could force the Fed to tighten more aggressively.
His comments reinforce the higher-for-longer rate narrative, a direct headwind for growth-oriented technology stocks whose valuations are sensitive to rising discount rates. The Nasdaq Composite fell 0.2 percent to 26,531.
The market reaction showed clear divergence among major tech players. Tesla dropped 1.6 percent to $322.17 as investors weighed rising borrowing costs against consumer demand and capital expenditures. Microsoft edged down 0.5 percent to $490.19 and Amazon fell 0.6 percent to $275.68, reflecting broader repricing of long-duration assets in a tightening environment.
Nvidia bucked the trend, rising 3.2 percent to $218.72 on continued strength in AI infrastructure demand. That move signals a tactical split within tech: investors are favoring companies with immediate AI catalysts over those exposed to rate-sensitive consumer spending or long-cycle project financing.
The S&P 500 closed flat at 7,737 while the Dow Jones Industrial Average gained 0.8 percent. The Federal Open Market Committee's next scheduled meeting is Sept. 17-18. The August Consumer Price Index report, due Sept. 12, will be the key inflation data point ahead of that decision.
