JACKSON HOLE: U.S. stocks fell broadly Thursday as investors braced for Federal Reserve Chair Jerome Powell’s pivotal speech at the central bank’s annual economic symposium. The S&P 500 declined for a fifth consecutive session, shedding 0.4%, while the Nasdaq Composite also lost 0.4%. The Dow Jones Industrial Average dropped 225 points, or 0.5%, weighed down by a tech-led retreat and disappointing earnings from Walmart.
Market participants are closely watching Powell’s Friday remarks for clues on the Fed’s next move. Fed funds futures suggest a nearly 80% chance of a rate cut at the September policy meeting, according to CME’s FedWatch tool. However, minutes from the Fed’s July meeting revealed internal divisions, with Governors Christopher Waller and Michelle Bowman dissenting against holding rates steady—the first dual dissent since 1993.
“Valuations are stretched, and expectations are high,” said Rick Gardner, CIO at RGA Investments. “If Powell doesn’t signal a cut, we could see a pullback, especially with August’s thin trading volumes.”
Retail giant Walmart fell more than 4% after missing earnings estimates despite strong sales, marking its first quarterly miss since May 2022. Tech stocks continued their slide, with Nvidia, Palantir, and Meta among the notable decliners.
Weekly performance across major indexes reflects investor caution:
| Index | Thursday Change | Weekly Change |
| S&P 500 | -0.4% | -0.9% |
| Nasdaq Composite | -0.4% | -2.1% |
| Dow Jones Industrial | -0.5% (-225 pts) | -0.1% |
Powell’s speech comes amid growing concerns over inflation and labor market softness. Analysts expect him to maintain a data-dependent stance, with the Fed’s dual mandate—price stability and maximum employment—under increasing strain.