Market Jitters as Investors Await Powell's Speech at Jackson Hole

Wall Street's main indices declined on Thursday, rattled by investor trepidation over potentially hawkish remarks expected from Federal Reserve Chair Jerome Powell. The anticipation surrounds his upcoming speech at the Jackson Hole Economic Policy Symposium on Friday.

Traders are on edge, looking for hints on impending U.S. interest rate adjustments following recent job market weaknesses. With a previously high probability of rate cuts now in doubt, investors are beginning to reassess their strategies, said Sam Stovall, CFRA Research's chief investment strategist. The sentiment was further strained by Walmart's quarterly results, which, despite surpassing annual sales expectations, missed profit estimates.

Trading volumes were thin, with only 12.28 billion shares exchanged, amplifying market reactions to Powell's anticipated commentary. Adam Turnquist from LPL Financial noted the cautious atmosphere as investors brace for potential volatility. Meanwhile, additional reports indicated an uptick in business activity in August and unexpected rises in July home sales, complicating the backdrop for the Federal Reserve's policy considerations.

(With inputs from agencies.)