Breaking News: U.S. Stocks Reverse Gains Amid Weaker Economic Data Ahead of Powell's Speech at Jackson Hole
On Thursday, U.S. stocks took a hit as weaker economic data raised concerns about the slowing pace of the economy, just a day before Fed chairman Jerome Powell's anticipated speech at Jackson Hole. The Dow Jones Industrial Average rose 120 points, the S&P 500 fell 0.5%, and the Nasdaq fell 0.8%.
Jobless claims were in line with expectations, but manufacturing activity slipped, adding to worries about the U.S. labor market. Data showed an increase in Americans filing for unemployment benefits, while a revision of payrolls revealed the U.S. economy created fewer jobs than previously reported.
The Federal Reserve's meeting minutes from late July indicated a growing number of policymakers supported lowering interest rates to combat inflation. Analysts predict a 50 bps reduction in rates as their base case for September.
Investors are eagerly awaiting Powell's speech at Jackson Hole, where he is expected to reiterate the central bank's dovish stance, possibly setting the stage for a September rate cut.
In the stock market, Peloton soared after returning to sales growth, while Snowflake fell despite beating earnings expectations. Williams-Sonoma and Advance Auto Parts also saw declines after reporting mixed quarterly results.
In summary, the current economic indicators and market trends suggest potential volatility ahead. Investors should stay informed and be prepared for market fluctuations in the coming weeks.