Wall Street ticks lower as investors await Powell's speech

Fed Chair’s Jackson Hole Speech Gathers Steam After Soft Earnings

The market’s shaken up again. Last Thursday’s earnings slide and a sluggish labour snapshot have set the stage for Fed Chair Jerome Powell to address the crowd tomorrow at Jackson Hole, with a clear warning that the financial huddle is far from calm.

Why the buzz matters

• Corporate numbers fell short of expectations, sending shockwaves through traders.
• Employment data suggested the labor market’s beating slower than a Monday morning stand‑up.
• All eyes now turn to Powell’s message about interest rates and inflation control.

Hold onto your blanket

With Powell’s upcoming remarks looming large, investors are bracing for more drama— a little like trying to predict whether the stock market will finally recover after the last roller‑coaster ride.

Wall Street’s Unsteady March: A Roller‑Coaster Ahead of Powell’s Talk

Yesterday’s market saw a tug‑of‑war. Prices dipped while investors appeared preoccupied with Walmart’s latest earnings report – a sizzle that just couldn’t heat up the mood before Fed Chair Jerome Powell is slated to speak.

Labor Market Gets a New Twist

• First‑time jobless claims spiked to 235,000, exceeding expectations.
• So far, the labor market is showing a bit of wear, raising doubts about how strong the economy truly is.

Walmart’s Middle‑Quarter Countdown

While Walmart nailed slight increases in second‑quarter profits and sales – all while navigating a tricky tariff maze – the company still fell short of Wall Street’s profit hopes. This downturn gave traders a double‑tug on their wallets.

Investors’ Final Thought

With a higher-than‑anticipated unemployment figure and an underwhelming retail giant report, many market watchers are guessing that the stock market may feel a little zip‑zag moving toward Friday’s Powell address. Stay tuned for the next wave.

Poor results for Walmart

Retail Rollercoaster: Walmart Sinks, Coty Collapses, Markets Mostly Chill

Just after the U.S. ticker opened, the country’s biggest grocer, Walmart, saw its shares tumble 4.3%. What’s the story? Surprisingly, the company is still raising its profit and revenue expectations—so investors aren’t exactly laughing.

Walmart’s Quick Dip

• Shares slid 4.3% right after the market opened.
• Despite the drop, Walmart is boosting its yearly profit and sales outlook.
• First-­major US retailer of the week revealing consumer pain amid higher tariff‑driven prices.

Coty’s Bumpy Road

• The beauty giant, owner of CoverGirl and Clairol, turned a revenue flop into a fourth‑quarter loss.
• Shares plunged more than 20% after hours.
• Sales are down 8% year‑over‑year, and margins are feeling the squeeze.
• Tariff impacts plus lower sales are tightening the cash‑flow squeeze.

Market Reaction – A Slow Spin

• The S&P 500 opened a touch below its prior close.
• The Dow Jones dipped 0.2%.
• The Nasdaq nudged a smidge up, +0.1%, by the 4:30 p.m. European‑time mark.

Other Tidbits

• Eurozone business activity is hitting a 15‑month high in August.
• Germany’s Porsche is shutting down the battery‑sub subsidiary Cellforce, according to reports.

Jackson Hole Banking Symposium

Fed Chair Jerome Powell’s Jackson Hole Speech: The Wake‑Up Call for Wall Street

On Friday, the world’s most powerful economist Jerome Powell will step onto the stage in Jackson Hole, Wyoming to deliver a speech that could make headlines across the globe. Central bankers, investors, and even the President of the United States—yes, even Donald Trump—are all holding their breath.

The Fed’s Stubborn Stand

• Last year, the Federal Reserve decided to hold its main policy rate steady. The plan? A cautious approach to avoid a possible spike in inflation triggered by Trump’s tariff tantrums.
• But the U.S. economy just dropped a surprisingly weak jobs report. That could be the real game‑changer.
• Despite the sluggish employment numbers, the Fed’s July meeting minutes still show most officials prioritizing the risk of rising inflation over job losses.

Trump’s Frustration and the Fed’s Resilience

• Trump isn’t exactly taking the restraint gracefully. He’s publicly slammed Powell and other Fed officials, even going so far as to demand resignations.
• During the same week, federal governor Lisa Cook put a lid on the drama by refusing to leave her position after a Trump aide accused her of mortgage fraud.

What’s on the Horizon?

Investors—and the president—are desperately hoping Powell will taste the sweet words of a potential rate cut in his Jackson Hole address. A dip in rates would be just the cigarette that could reignite the stock market and give many investment vehicles a breath of fresh air.

Closing Thought

While the Fed’s decisions might make anyone want a cup of tea, the stakes for Wall Street are high. By Friday, the world will see if Powell’s words can flip the script on this economic tug‑of‑war.

Markets in the rest of the world

Europe’s Markets: Mixed Signals

In the euro‑zone, the DAX in Germany nudged higher by a handful of points, while Britain’s FTSE 100 ticked up just 0.2%. By contrast, Paris saw a dip of 0.5% in the CAC 40 – a gentle reminder that markets are never really in a straight line.

Asia’s Pulse: Japan’s Factory Check‑In

• Nikkei 225 in Tokyo slid 0.6% after a survey revealed that Japan’s factory activity stayed in contraction for the second month of August.
• Still, the S&P Global Flash Japan Manufacturing PMI rose to 49.9 from 48.9 last month – just shy of the 50‑threshold that separates growth from decline.
• Export‑heavy factories are feeling the heat from higher U.S. tariffs imposed by the Trump administration.

Hong Kong and Shanghai: Subtle Shifts

• The Hang Seng index slipped 0.2%.
• Meanwhile, Shanghai’s composite gained modestly by 0.1%.

Australia Breaks Out with a Bang

Sydney’s ASX 200 rallied, adding a solid 1.1% to close at 9,019.10 – the first time it crossed the 9,000 mark during a surge backed by robust economic data and corporate earnings.

South Korea, Taiwan & India: Upward Trends

• South Korea’s KOSPI lifted 0.4% after trimming some morning gains.
• Taiwan’s TAIEX leapt 1.4%.
• India’s Sensex climbed a modest 0.3%.

Market Commentary

“Asian markets walked into Thursday like a card room still heavy with last night’s smoke—muted, watchful, waiting for the next cue out of Jackson Hole,” mused Stephen Innes of SPI Asset Management.