Stocks fell for a fifth straight day on Thursday as investors positioned cautiously ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole economic symposium.
The S&P 500 slipped 0.4% to close at 6,370.17, while the Nasdaq Composite lost 0.34% to finish at 21,100.31. The Dow Jones Industrial Average shed 153 points, or 0.34%, ending at 44,785.50.
Focus on interest rates
Markets are waiting to see whether Powell signals a September rate cut in his Friday remarks. Fed funds futures currently imply a 74% chance of a quarter-point cut next month, down from more than 92% just a week ago.
Minutes from the Fed’s July meeting showed policymakers are divided, with concerns over both inflation and labour market weakness. Two Fed governors dissented against holding rates steady, the first such double dissent since 1993.
Corporate moves
Earnings also weighed on sentiment. Walmart shares fell more than 4% after the retailer missed quarterly profit estimates for the first time since May 2022, citing higher costs linked to tariffs. Sales, however, beat expectations.
Technology names continued to retreat, with investors taking profits from high-flying stocks including Nvidia, Palantir and Meta Platforms. The S&P 500 is now down 1.2% for the week, while the Nasdaq has fallen 2.4%. The Dow is on track for a 0.4% weekly loss.
Australian outlook
Australian shares are expected to open modestly lower after the ASX 200 set a record high on Thursday. Futures are pointing down 12 points, or 0.1%, to 8,971.
Friday’s local earnings calendar includes results from Guzman y Gomez and Monash IVF.
Coming up
All eyes now turn to Jerome Powell’s remarks at Jackson Hole, scheduled for midnight AEST Saturday, where investors will look for clues on the Fed’s next move.
