Tech leaders lose momentum in late trading
Mixed economic data, including a rise in jobless claims and stronger business activity, added to investor uncertainty Thursday as Wall Street slipped ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole address, where markets hope for clarity on a potential September rate cut.
The Dow Jones Industrial Average fell 152.81 points, or 0.34%, to 44,785.50. The S&P 500 lost 25.61 points, or 0.40%, to 6,370.17, while the Nasdaq Composite declined 72.54 points, or 0.34%, to 21,100.31, according to Reuters.
LSEG data showed that market expectations for a 25-basis-point rate cut in September have eased to 79% from 99.9% a week earlier. Trading volume reached 12.28 billion shares, down from the 20-day average of 17.08 billion, which magnified price movements during the session.
Economic reports released Thursday presented mixed signals. Weekly jobless claims rose by 11,000 to 235,000, the largest increase since May, while a private report pointed to stronger business activity in August. Another report showed an unexpected uptick in July sales of existing homes. Yields on US Treasuries climbed following the data, adding pressure to equities.
At Jackson Hole, Powell is scheduled to deliver a speech Friday at 10 a.m. ET. According to Financial Express report, the annual symposium, hosted by the Federal Reserve Bank of Kansas City, brings together monetary policymakers, economists, and market participants to discuss long-term policy issues. This year’s theme is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.”
The Fed has kept its benchmark rate between 4.25% and 4.5% since December’s 50-basis-point cut. Slowing job growth, with July payrolls adding only 73,000 jobs and the unemployment rate rising to 4.2%, has fueled debate over whether the central bank will lower rates at its September 16–17 meeting.
Corporate earnings also weighed on markets. Walmart shares dropped 4.5% after the retailer reported higher sales and revenue but lower quarterly earnings due to increased tariff-related costs. The company raised its full-year sales and profit outlook. Consumer staples led S&P 500 sector declines, falling 1.18%, while materials and energy were the only sectors that gained.
Other major retailers also saw declines earlier this week, with Target slipping 1.5% and Home Depot losing 1% as investors assessed the potential effects of tariffs on consumer spending.
Technology stocks, which have driven much of the market’s recent performance, continued to retreat. Nvidia, Meta, Amazon, and Advanced Micro Devices all ended the session lower.
Declining issues outpaced advancers by a 1.6-to-1 ratio on the NYSE. The Nasdaq recorded 63 new highs and 101 new lows, while the S&P 500 posted six new 52-week highs and no new lows.
