After days of turbulence, U.S. technology stocks managed to stabilize on Wednesday. This brought some relief to investors who have been watching sharp swings in the Nasdaq. However, attention quickly shifted to the upcoming Jackson Hole symposium. Federal Reserve Chair Jerome Powell is expected to provide crucial signals on the central bank’s policy direction there.

Markets are betting heavily on an interest rate cut in September, but political pressure has complicated the outlook. President Donald Trump recently demanded the resignation of Fed Governor Lisa Cook. He is also moving to nominate new allies to the board. This unusual political intervention has left traders wondering whether the Fed can stay independent while navigating inflation concerns.

When the Fed hints at rate cuts, stocks often rise. This happens because lower borrowing costs boost corporate profits. They also increase investor appetite for risk. But political uncertainty, joined with mixed signals about inflation, makes the outcome less predictable. That’s why markets are cautious even as tech stocks find temporary stability.