STORY: U.S. stocks fell on Thursday, with all three of Wall Street’s main indexes losing about a third of a percent or slightly more.
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Investors feared potentially hawkish remarks from Federal Reserve Chair Jerome Powell when he speaks Friday from the central bank’s annual symposium in Jackson Hole, Wyoming.
With traders pricing in a roughly 80% chance of a September rate cut, any hints that’s off the table could spark market volatility.
A weakening labor market combined with an uptick in inflation has put the Fed in a tough spot, says Chris Carey, VP, portfolio manager at Carnegie Investment Counsel.
“The Fed has a bit of a unique game to be playing from the chairman’s position, which is that for the first time in quite a while, the majority of his governors aren’t all on the same page with regards to which direction to take rates. // I think that we have a 25 basis point cut locked in, and the general market consensus, we might see another 25 basis points between now and the end of the year. But really it’s a better idea of policy direction and how Fed Chair Powell is gonna be able to corral the rest of his governors to be on board and set a clear path forward.”
:: Walmart
Stocks on the move Thursday included Walmart, which fell 4.5% after the retail giant raised its fiscal year sales and profit forecasts, but missed quarterly profit estimates and flagged higher costs from tariffs.
Shares of Coty plummeted more than 21% after the beauty products maker forecast lower current-quarter sales on weak U.S. spending.
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And shares of Cracker Barrel Old Country Store shed more than 7% after the restaurant chain unveiled its new logo, which no longer includes a man leaning on a barrel.