US: Stocks fall ahead of Fed chair Powell speech
WALL Street stocks tumbled on Thursday (Aug 24) ahead of a key address by Federal Reserve chair Jerome Powell as Treasury bond yields resumed their upward climb.
Major indices failed to extend on Wednesday’s rally, turning negative soon after the opening bell and progressively selling off further.
The Dow Jones Industrial Average dropped 1.1 per cent to 34,099.42.
The broad-based S&P 500 shed 1.4 per cent to 4,376.31, while the tech-rich Nasdaq Composite Index slid 1.9 per cent to 13,463.97.
The yield on the 10-year US Treasury note advanced as markets braced for Powell’s Jackson Hole, Wyoming speech with memories of his 2022 hawkish commentary that sent stocks sputtering.
There’s “a fair bit of trepidation about what Jay Powell is trying to get across”, said Art Hogan of B Riley Wealth Management.
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Markets will be looking for clues on monetary policy based on how he characterises the progress on bringing down inflation.
Economic data released on Thursday showed initial jobless claims dipped for the week ending Aug 19, while continuing jobless claims fell as well.
Durable goods orders slumped from June to July, driven mainly by transportation. The figures also indicated that business spending remained lukewarm.
Among individual companies, Nvidia eked out a 0.1 per cent gain after much bigger increases earlier in the session.
The chip company, whose valuation has soared in 2023, reported much better results than expected amid strong demand for its artificial intelligence technology.
Boeing dropped nearly five per cent on reports that its latest difficulty with 737 MAX manufacturing would delay deliveries.
Dollar Tree shares sank 12.9 per cent after its latest earnings report showed weakening profit margins with inflation-strapped customers trimming back discretionary purchases. AFP
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