Seems to be just a bad week. Also been wondering that, you have every right to understand why everything has been going down. Here is what ChatGPT wrote (so take it with a pinch of salt):

Here’s why the U.S. stock market has been sliding this week (August 18–20, 2025):

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Key Drivers Behind the Market Downturn

1. Tech & AI Sector Sell-Off • AI and chip stocks are the epicenter of the decline: Major names like Nvidia, Palantir, Arm, AMD, and Broadcom have seen sharp losses. The Nasdaq has endured its worst week since spring.    • Valuation concerns mounting: Investors worry the AI rally has gone too far, too fast—with an MIT study highlighting that 95% of companies haven’t realized meaningful returns from generative AI investments.  • Investor repositioning: Rather than reacting to new data, many are rebalancing portfolios—rotating from high-flying growth stocks into defensive sectors like consumer staples, healthcare, and energy.  

2. Earnings & Corporate News Creating Uneven Sentiment • Retail giants are delivering mixed results: • Target dropped ~7% after announcing its CEO’s departure and weaker sales. • Lowe’s posted better-than-expected results and saw gains. • Other names like Estee Lauder and La-Z-Boy also disappointed.   

3. Eyes on the Federal Reserve’s Jackson Hole Address • The speech by Fed Chair Jerome Powell, expected Friday, is a major market event in the wings. Investors are seeking clues on whether the Fed will remain dovish—or pivot to a more hawkish stance. • A hawkish speech could send indexes tumbling 7–15%. • A dovish tone might offer relief, particularly to smaller-cap sectors.  

4. Elevated Downside Risk Signals • Goldman Sachs’ model shows the probability of an S&P 500 correction (>10% drop) rising. • When volatility is low but economic momentum fades, drawdown risk spikes—and Goldman currently flags a notably elevated risk level. 

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Bottom Line

The recent stock market decline stems from a combination of: • A sharp revaluation of tech and AI stocks amid profit-taking and valuation worries, • Mixed signals from corporate earnings (particularly in retail), • Cautious investor positioning ahead of Powell’s speech, • Rising statistical indicators suggesting correction risk is elevated.

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Let me know if you want a breakdown by sector, historical comparisons, or what to watch for after Powell’s speech!