Wall Street faced a downturn on Thursday as traders exercised caution ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
Powell is anticipated to signal a potential rate cut in September, but market sentiment currently favors a smaller 25-basis-point reduction rather than a more substantial 50-basis-point cut.
On Thursday, economic data indicated that U.S. private sector activity surpassed expectations in August, according to the S&P Global flash Purchasing Managers’ Index (PMI). The growth was primarily driven by the services sector, which more than compensated for the faster contraction in manufacturing.
Major U.S. equity indices traded lower throughout the session, while the dollar and Treasury yields rebounded after four consecutive days of losses.
The U.S. dollar rose nearly 0.4% against a basket of major currencies, and the yield on the 10-year Treasury note climbed six basis points. As a result, bonds ...
