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A number of stocks fell in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve’s Jackson Hole symposium later in the week.
The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the “AI trade,” which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
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Real Estate Services company Opendoor (NASDAQ:OPEN) fell 3.3%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.
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Home Furnishings company Purple (NASDAQ:PRPL) fell 3.1%. Is now the time to buy Purple? Access our full analysis report here, it’s free.
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Consumer Electronics company Peloton (NASDAQ:PTON) fell 6.7%. Is now the time to buy Peloton? Access our full analysis report here, it’s free.
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Gaming Solutions company DraftKings (NASDAQ:DKNG) fell 3.7%. Is now the time to buy DraftKings? Access our full analysis report here, it’s free.
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Media company fuboTV (NYSE:FUBO) fell 7.8%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
fuboTV’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.3% on the news that it announced two major international content partnerships to strengthen its premium sports lineup in key global markets. The sports-first streaming platform forged a multi-year partnership with DAZN in Canada, bringing marquee rights like the NFL and UEFA Champions League to its subscribers. This expands on an existing distribution agreement in the U.S. In a separate deal, Fubo’s subsidiary in France, Molotov, secured a carriage agreement with Ligue 1, France’s professional soccer league, for the 2025/2026 season. These agreements significantly broaden Fubo’s premium live sports content in key international markets, strengthening its global strategy.
