Wall Street Wobbles Amid Jackson Hole Jitters
Wall Street indexes dipped as investors awaited insights from the Federal Reserve's symposium in Jackson Hole. Walmart's upbeat fiscal expectations were overshadowed by missed quarterly profit goals and looming tariffs, causing a 4.3% drop in shares. Investors remain focused on potential September rate cuts amid ongoing labor market weaknesses.
Wall Street experienced a downturn on Thursday as investors turned their attention to the upcoming Federal Reserve conference in Jackson Hole for monetary policy guidance. Despite Walmart raising its fiscal sales and profit forecasts due to robust consumer demand, its shares fell 4.3%, as profit expectations weren't met and tariff-related costs loomed large.
The broader market also grappled with mixed reports from retailers like Target and Home Depot. Additionally, technology giants such as Meta, Amazon, and AMD saw significant declines, as investors feared overvaluation and regulatory challenges from Washington.
Meanwhile, Coty's shares plummeted after forecasting a drop in sales, and market participants keenly awaited commentary from Fed Chair Jerome Powell at the symposium. The expectation is for a potential interest rate cut in September, following signs of labor market weakness, although recent central bank minutes suggested a cautious approach amid trade uncertainties.
(With inputs from agencies.)
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