U.S. Stocks Fall as Yields Rise Ahead of Powell’s Speech
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U.S. stocks closed lower on Thursday as investors braced for the highly anticipated speech by Federal Reserve Chairman Jerome Powell at Jackson Hole. Concerns over rising Treasury yields and weaker-than-expected economic data also contributed to the market’s downturn. $Dow Jones Industrial Average (.DJI.US)$ fell by 0.43%, while $S&P 500 Index (.SPX.US)$ dropped 0.89%, and $Nasdaq Composite Index (.IXIC.US)$ tumbled 1.63%.
Key Stock Movements
• $JPMorgan (JPM.US)$ gained 0.95%, closing at $216.63, while $AMEX (AMEX.US)$ and $Johnson & Johnson (JNJ.US)$ added 0.59% and 0.57%, respectively.
• $Intel (INTC.US)$ experienced one of the biggest declines, falling 6.12% to $20.10.
• $Amazon (AMZN.US)$ lost 2.21% to settle at $176.13, while $Microsoft (MSFT.US)$ dropped 2.03% to $415.55.
On $S&P 500 Index (.SPX.US)$, $Franklin Resources (BEN.US)$ rose 4.55% to $20.68, while $Nordson (NDSN.US)$ and $CenterPoint Energy (CNP.US)$ gained 3.33% and 3.06%, respectively. However, $Moderna (MRNA.US)$ slumped 6.47%, and $Tesla (TSLA.US)$ fell 5.65%.
Nasdaq Performance
Top performers on $Nasdaq Composite Index (.IXIC.US)$ included $Staffing 360 Solutions (STAF.US)$, which surged 155% to $3.06, and $Faraday Future Intelligent Electric Inc. (FFIE.US)$, which rose 123.96% to $8.04. On the downside, $Revelation Biosciences (REVB.US)$ plunged 40.19% to $1.25, while $Vision Marine Technologies (VMAR.US)$ fell 30% to $4.20.
Economic Data and Impact
Rising Treasury yields pressured the market, with investors expecting a dovish tone from Jerome Powell regarding interest rates. Additionally, Thursday’s data revealed that jobless claims rose by 4,000 to 232,000, signaling a potential cooling in the U.S. labor market. This came after Wednesday’s revision showed that the U.S. economy created 818,000 fewer jobs than initially reported from March 2023 to March 2024.
• $JPMorgan (JPM.US)$ gained 0.95%, closing at $216.63, while $AMEX (AMEX.US)$ and $Johnson & Johnson (JNJ.US)$ added 0.59% and 0.57%, respectively.
• $Intel (INTC.US)$ experienced one of the biggest declines, falling 6.12% to $20.10.
• $Amazon (AMZN.US)$ lost 2.21% to settle at $176.13, while $Microsoft (MSFT.US)$ dropped 2.03% to $415.55.
On $S&P 500 Index (.SPX.US)$, $Franklin Resources (BEN.US)$ rose 4.55% to $20.68, while $Nordson (NDSN.US)$ and $CenterPoint Energy (CNP.US)$ gained 3.33% and 3.06%, respectively. However, $Moderna (MRNA.US)$ slumped 6.47%, and $Tesla (TSLA.US)$ fell 5.65%.
Nasdaq Performance
Top performers on $Nasdaq Composite Index (.IXIC.US)$ included $Staffing 360 Solutions (STAF.US)$, which surged 155% to $3.06, and $Faraday Future Intelligent Electric Inc. (FFIE.US)$, which rose 123.96% to $8.04. On the downside, $Revelation Biosciences (REVB.US)$ plunged 40.19% to $1.25, while $Vision Marine Technologies (VMAR.US)$ fell 30% to $4.20.
Economic Data and Impact
Rising Treasury yields pressured the market, with investors expecting a dovish tone from Jerome Powell regarding interest rates. Additionally, Thursday’s data revealed that jobless claims rose by 4,000 to 232,000, signaling a potential cooling in the U.S. labor market. This came after Wednesday’s revision showed that the U.S. economy created 818,000 fewer jobs than initially reported from March 2023 to March 2024.
The Fed’s July meeting minutes revealed increasing support for lowering interest rates amid inflation progress, raising speculation about a potential rate cut in September. However, uncertainty remains about the Fed’s exact timeline for easing monetary policy.
Commodities and Currency Markets
In commodities, $Gold Futures(DEC4) (GCmain.US)$ delivery fell 1.09% to $2,519.65 per ounce. Meanwhile, $Crude Oil Futures(NOV4) (CLmain.US)$ prices rose, with the October delivery increasing by 1.38% to $72.92 per barrel and Brent oil rising by 1.38% to $77.10 per barrel.
Commodities and Currency Markets
In commodities, $Gold Futures(DEC4) (GCmain.US)$ delivery fell 1.09% to $2,519.65 per ounce. Meanwhile, $Crude Oil Futures(NOV4) (CLmain.US)$ prices rose, with the October delivery increasing by 1.38% to $72.92 per barrel and Brent oil rising by 1.38% to $77.10 per barrel.
In the currency market, the $USD/JPY (USDJPY.FX)$ pair climbed by 0.75% to 146.35, and the U.S. Dollar Index rose 0.50% to 101.42, reflecting a stronger U.S. dollar.
Market Sentiment
The market remains on edge as investors await Powell’s address, with hopes for clarity on the Fed’s rate policy. While there is optimism around future rate cuts, rising bond yields and weaker labor market data are creating a cautious outlook. Volatility is expected to persist as investors weigh potential economic headwinds against the Fed’s policy trajectory.
Market Sentiment
The market remains on edge as investors await Powell’s address, with hopes for clarity on the Fed’s rate policy. While there is optimism around future rate cuts, rising bond yields and weaker labor market data are creating a cautious outlook. Volatility is expected to persist as investors weigh potential economic headwinds against the Fed’s policy trajectory.
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