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Headlines
- Wall St Dips as Yields Rise; Jackson Hole in Focus
- Stocks Fall as Treasury Yields Climb Before Fed Speech
- Market Retreats Ahead of Powell's Jackson Hole Address
Wall Street's main indexes experienced a decline on Thursday amid volatile trading conditions. Rising Treasury yields put pressure on stocks, with the 10-year note yield climbing to 3.8502% after a period of decline.
Major stocks, including those in the technology and semiconductor sectors, saw drops. For example, Tesla (NASDAQ:TSLA) dropped by 3.2%, and the Philadelphia Semiconductor Index (.SOX) fell by 2.4%. Consumer discretionary and information technology sectors were among the biggest decliners.
Attention is now focused on the Economic Symposium in Jackson Hole, where Federal Reserve Chair Jerome Powell is scheduled to speak. Market participants are keen to hear his remarks for insights into potential future actions by the Fed, particularly regarding interest rates.
Recent comments from Fed policymakers indicated that with inflation under control, they are closely monitoring the labor market to decide when to adjust interest rates. There is anticipation of potential rate changes as early as next month.
The S&P 500 (.SPX) had seen gains in nine out of the last ten sessions leading up to Wednesday. This followed reports indicating fewer job additions than initially estimated. The labor market's performance has recently become a focal point due to unexpected rises in unemployment, which initially led to market declines.
Money markets currently estimate a 76% chance of a 25-basis-point rate cut in September, with further easing expected by December. Meanwhile, recent data showed a slight increase in new unemployment benefit claims and a slowdown in overall U.S. business activity.
At 11:42 a.m. ET, the Dow Jones Industrial Average (.DJI) decreased by 120.41 points to 40,770.08. The S&P 500 (.SPX) fell by 23.38 points to 5,597.47, and the Nasdaq Composite (.IXIC) dropped by 145.63 points to 17,773.35.
In individual stocks, Snowflake (NYSE:SNOW)raised its full-year revenue forecast, yet its shares fell by 13.7% due to unchanged margin forecasts. Conversely, Zoom Video Communications (ZM.O) saw a 12.2% increase in its stock price after raising its revenue outlook. Advanced Auto Parts (AAP.N) saw a 16.5% decline following a revised annual profit forecast.
Declining issues outnumbered advancers on both the NYSE and Nasdaq. The S&P 500 recorded 47 new 52-week highs and one new low, while the Nasdaq Composite saw 67 new highs and 38 new lows.
