Highlights
Stocks sagged again Thursday with growth and momentum shares under pressure in a mild risk-off move ahead of Federal Reserve Chair Jerome Powell's Friday appearance. The Dow Jones industrial average eased 0.3 percent while the S&P 500 lost 0.4 percent and the Nasdaq slipped 0.3 percent. US bond yields, the dollar and oil prices all rose.
The market reacted badly to comments from Fed officials casting doubt on the conventional wisdom that the Fed will cut rates in September. Cleveland Fed President Beth Hammack, not an FOMC voting member this year, said she would not support a rate cut in September if she were voting. And Kansas City Fed President Jeffrey Schmid, who is a voter, expressed caution about rate cuts and said there is more to be done to contain inflation.
Among stocks in focus, Walmart was a big decliner after posting an earnings miss. On the positive side, Palantir, the AI play, managed to close a bit higher after falling for six straight days.
Economic indicators came in mixed Thursday: on the weak side, jobless claims were higher than expected and Philadelphia Fed manufacturing data below expected while purchasing managers data and existing home sales both topped expectations.
The market reacted badly to comments from Fed officials casting doubt on the conventional wisdom that the Fed will cut rates in September. Cleveland Fed President Beth Hammack, not an FOMC voting member this year, said she would not support a rate cut in September if she were voting. And Kansas City Fed President Jeffrey Schmid, who is a voter, expressed caution about rate cuts and said there is more to be done to contain inflation.
Among stocks in focus, Walmart was a big decliner after posting an earnings miss. On the positive side, Palantir, the AI play, managed to close a bit higher after falling for six straight days.
Economic indicators came in mixed Thursday: on the weak side, jobless claims were higher than expected and Philadelphia Fed manufacturing data below expected while purchasing managers data and existing home sales both topped expectations.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
