Stocks fell on Thursday following a four-day losing streak for the S&P 500 as tech names dragged the broader market lower and traders weighed earnings from retail giant Walmart.
Walmart shares dipped more than 2% after the retailer beat Wall Street’s quarterly sales estimates but missed earnings expectations, the first time it missed on quarterly earnings since May 2022.
Investors are looking to hear from Federal Reserve Chair Jerome Powell on Friday at the central bank’s annual economic symposium in Jackson Hole, Wyo., where he could offer insights into the path of interest rates. Fed funds futures are pricing in a nearly 80% likelihood of the central bank cutting interest rates at its next policy gathering in September, according to CME’s FedWatch tool.
Minutes from Fed’s July meeting showed policymakers are worried about the state of the labor market and inflation, though most agreed that it was too soon to lower interest rates. Fed governors Christopher Waller and Michelle Bowman dissented against holding rates steady, marking the first time two board members have done so since 1993.
“The Fed is worried about inflation accelerating as companies pass tariffs on to consumers,” said David Russell, global head of market strategy at TradeStation. “The minutes are consistent with Powell’s hawkish comments last meeting. The bulls might get some cold water splashed in their faces at Jackson Hole.”
The market this week has been pressured by heavy bout of tech selling. Investors took in profits from high-flying names including Nvidia, Palantir and Meta