On Wednesday local time, the three major U.S. stock indices closed with mixed results. At the close, the Dow Jones Industrial Average rose by 0.04% to 44,938.31 points, while the S&P 500 fell by 0.24% to 6,395.78 points, marking its fourth consecutive day of decline. The Nasdaq Composite Index dropped by 0.67% to 21,172.86 points.

In terms of market performance, selling pressure primarily came from the technology and semiconductor sectors, as investors continued to take profits from popular tech stocks that had seen significant gains this year. Major tech stocks declined across the board. Among individual stocks, Apple fell nearly 2%, Amazon dropped over 1%, Tesla declined more than 1%, Google fell over 1%, Microsoft decreased by 0.79%, Facebook dipped 0.5%, and Nvidia edged down 0.14%.

Chip stocks also mostly declined, with the Philadelphia Semiconductor Index falling by 0.72%. Among individual stocks, Intel plunged nearly 7%, Micron Technology dropped almost 4%, ARM fell over 2%, and TSMC declined more than 1%.

Chinese concept stocks were mixed, with the Nasdaq Golden Dragon China Index bucking the trend to rise by 0.33%. Among popular Chinese concept stocks, Newegg surged over 23%, Jian Yong Sheng Ji rose more than 14%, GDS Holdings gained over 7%, Futu Holdings climbed逾6%, and BOSS Zhipin increased over 4%. On the downside, Xunlei fell more than 7%, Pony.ai dropped逾4%, and Trip.com Group declined over 2%.

Carol Schleif, Chief Market Strategist at BMO Private Wealth, stated that after the rally since early April, it is not surprising that some investors are taking profits. Additionally, trading volume in the U.S. stock market is typically thin in late August, so price fluctuations often exceed what fundamentals can explain.

Jerry Chen, Senior Analyst at GAIN Capital, believes that after experiencing the impact of tariff policies in April, investors understand that financial markets are one of the few areas Trump genuinely cares about. Therefore, compared to the theoretical Federal Reserve put, the market has more faith in the economic policy interventions of the Trump administration. This is also why U.S. stocks have repeatedly hit new highs since April and have become disconnected from fundamentals. In the absence of major surprises or negative factors, buying on dips after moderate adjustments remains a viable strategy for U.S. stocks.