21.08.202518:21:53UTC+00Wall Street Slips Ahead of Powell’s Jackson Hole Speech

On Thursday, the stock market experienced a widespread downturn, as the S&P 500 declined for the fifth consecutive session. This downturn occurred as investors shifted their attention to Federal Reserve Chairman Jerome Powell's anticipated address at the Jackson Hole symposium. The Dow Jones Industrial Average fell by approximately 125 points, while the Nasdaq decreased by 0.4%, primarily due to continuing weaknesses in major technology stocks.

Walmart's performance had a significant impact on the market, with its shares declining by over 4%. This decrease occurred even though the company raised its full-year sales and profit forecasts, as it reported quarterly earnings that fell short of expectations for the first time since 2022. The underwhelming earnings report, coupled with cautious outlooks from other prominent retailers, highlighted consumer uncertainty amidst the backdrop of higher tariffs and uneven spending trends.

In related economic news, jobless claims exceeded expectations, and the S&P Global composite Purchasing Managers' Index (PMI) indicated that business activity is accelerating at its fastest rate in three years, painting a mixed economic landscape. Investors are now eagerly awaiting Powell's remarks on Friday for insights into the likelihood of an interest rate cut in September, with futures markets currently indicating a 73% probability.