Wall Street closes down as investors brace for Powell's speech
Wall Street's main indexes fell on Thursday as investors feared potentially hawkish remarks by the Federal Reserve chair on Friday that could spark volatility, while big-box retailer Walmart's quarterly results dampened sentiment.
All eyes are on the Jackson Hole Economic Policy Symposium where Fed Chair Jerome Powell is scheduled to speak on Friday at 10 a.m. ET. Traders will closely monitor his speech for any clues on U.S. interest rate cuts in September following recent job market weakness.
Traders have pared down bets on a 25-basis-point interest rate cut in September to 79% from 99.9% last week, according to data compiled by LSEG.
Thin August trading volumes are likely to magnify any market moves following Powell's comments.
Volume on U.S. exchanges was 12.28 billion shares on Thursday, compared with the 17.08 billion average for the full session over the last 20 trading days.
Multiple policymakers, including Cleveland Fed President Beth Hammack, Atlanta President Raphael Bostic and Kansas City Fed President Jeffrey Schmid, have struck a cautious tone and acknowledged the need to stay data-dependent.
The Dow Jones Industrial Average fell 152.81 points, or 0.34%, to 44,785.50, the S&P 500 lost 25.61 points, or 0.40%, to 6,370.17 and the Nasdaq Composite lost 72.54 points, or 0.34%, to 21,100.31.
A private report indicated business activity picked up pace in August, reflecting a complex environment for the U.S. central bank, which will deliberate on interest rates next month. Another report also showed July sales of existing U.S. homes unexpectedly ticked higher.
Yields on U.S. Treasuries rose following the reports, also putting pressure on stocks.
Source : Reuters
