Exclusive Content:

Ouverture d'une foire aux vêtements d'hiver pour...

Write a detailed and engaging article about Ouverture d'une...

Auto apskats: Mercedes E klase – Dienas...

Write a detailed and engaging article about Auto apskats:...

Julen: de l'èxit viral a les xarxes...

Write a detailed and engaging article about Julen: de...

Stocks on Wall Street decline in anticipation of Federal Reserve Chair Jerome Powell’s speech

US stocks weakened on Thursday, August 22, as investors awaited Federal Reserve Chair Jerome Powell’s speech scheduled for Friday, August 23. The S&P 500 fell by 0.9% following a two-week rally, while the Dow Jones Industrial Average dropped by 177 points, or 0.4%, and the Nasdaq composite dipped by 1.7%.

The decline in stocks was attributed to increasing pressure in the bond market as Treasury yields rose, fueled by mixed data on the US economy. The economy has been slowing down due to high interest rates implemented to control inflation. Reports indicated that slightly more US workers applied for unemployment benefits last week than expected, signaling a cooling job market.

Another report highlighted a dual picture of business activity in the US, with growth in services businesses improving but the manufacturing sector contracting at a more severe rate. This data suggested that while the US economy is still growing, there are signs of fragility.

The Federal Reserve has raised its main interest rate to the highest level in over two decades in an effort to control inflation without causing a recession. With inflation slowing, there is widespread expectation for the Fed to cut interest rates at its next meeting in September, marking the first easing since the COVID pandemic in 2020. Powell’s speech is highly anticipated as investors look for clues on the timing and extent of rate cuts to ease economic conditions.

Expectations for rate cuts have led to a drop in Treasury yields, benefiting mortgage rates and home sales. Despite economic challenges, US companies have reported mostly better-than-expected profits, with companies like Peloton and Zoom Video Communications seeing significant growth.

However, not all companies fared well, with stocks like Nvidia and Snowflake experiencing declines despite positive earnings reports. Advance Auto Parts also tumbled after falling short of profit expectations and cutting its forecast for the year.

Overall, the S&P 500, Dow Jones, and Nasdaq all closed lower on Thursday. In the bond market, the yield on the 10-year Treasury rose, reflecting investor uncertainty. Stock markets abroad saw modest movements, with some indexes in Asia and Europe making slight gains.

As investors await Powell’s speech and monitor economic indicators, the stock market remains volatile. It is essential for investors to stay informed and adapt to changing market conditions.

Latest

Ouverture d'une foire aux vêtements d'hiver pour 3 000 familles au Secrétariat de la capitale – وكالة سبأ

Write a detailed and engaging article about Ouverture d'une...

Auto apskats: Mercedes E klase – Dienas Bizness

Write a detailed and engaging article about Auto apskats:...

Julen: de l'èxit viral a les xarxes al seu debut amb ‘Una cançó’ – LOS40

Write a detailed and engaging article about Julen: de...

Newsletter

Don't miss

Founder of Gearbox expresses disappointment in Epic Games Store expectations

In the world of PC gaming, the battle between...

Pedestrian fatally struck by car in Marietta identified by police – Atlanta News First

Police in Marietta have identified the pedestrian who was...

The Role of Air-Powered Computers in Preventing Blood Clots

Air-powered computing is revolutionizing the way we monitor and...

Ouverture d'une foire aux vêtements d'hiver pour 3 000 familles au Secrétariat de la capitale – وكالة سبأ

Write a detailed and engaging article about Ouverture d'une foire aux vêtements d'hiver pour 3 000 familles au Secrétariat de la capitale  وكالة سبأ. The...

Auto apskats: Mercedes E klase – Dienas Bizness

Write a detailed and engaging article about Auto apskats: Mercedes E klase  Dienas Bizness. The article should be structured with clear distinct paragraphs, each focusing...

Julen: de l'èxit viral a les xarxes al seu debut amb ‘Una cançó’ – LOS40

Write a detailed and engaging article about Julen: de l'èxit viral a les xarxes al seu debut amb ‘Una cançó’  LOS40. The article should be...