Breaking News: S&P 500 Closes Lower Ahead of Powell's Speech at Jackson Hole
As the closing bell rang on Wall Street, the S&P 500 saw a 0.4% drop, with the Nasdaq falling 0.8% and the Dow Jones slipping 1.6%. The main culprit behind these losses? Rising Treasury yields, as investors brace themselves for Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday.
Investors are eagerly awaiting Powell's address, with expectations high for him to reinforce the central bank's dovish stance and potentially hint at a September rate cut. However, not all members of the Fed are on board with this decision, as Kansas City Fed President Jeffrey Schmid emphasized the need for more economic data before supporting a rate reduction.
In addition to Powell's speech, concerns about the U.S. labor market were heightened by the latest jobless claims data showing a rise of 4,000 filings. This comes on the heels of a significant revision to the number of jobs created in the U.S. economy, with the revised figures indicating a much slower growth rate than previously thought.
On the corporate front, Peloton Interactive's stock soared 34% on a return to sales growth, while Snowflake's stock fell 14% despite beating earnings expectations. Williams-Sonoma and Advance Auto Parts also saw declines following their quarterly results.
Meanwhile, Paramount Global and Evolent Health experienced gains due to M&A activity, with Paramount extending its merger agreement and Evolent Health reportedly in talks for a potential sale.
In conclusion, the financial markets are in a state of flux as investors await Powell's speech and grapple with mixed economic indicators and corporate earnings. It's crucial for individuals to stay informed and consider how these developments could impact their investment decisions and financial well-being.