The Nasdaq 100 took a significant hit on Thursday, sliding 1.6% as investors adopted a cautious stance in anticipation of Federal Reserve Chair Jerome Powell’s much-anticipated speech at the Jackson Hole Symposium, scheduled for Friday at 10:00 a.m. ET.
With market participants eagerly seeking insights on the future path of interest rates and the broader economic landscape, the session was marked by a shift towards risk aversion.
Market Sentiment Turns Bearish After Private Sector Data
Thursday’s session saw a noticeable downturn in sentiment after 11 a.m. as traders absorbed stronger-than-expected growth in private sector activity for August.
This unexpected data dented hopes for a larger-than-anticipated 50-basis-point rate cut by the Fed in September. As a result, market-implied probabilities for such a rate cut tumbled to 24%, down sharply from 38% ...
