Equities experienced a widespread decline on Thursday, with the S&P 500 marking its fifth consecutive day of losses, as market participants await Federal Reserve Chair Jerome Powell’s address on Friday. The broad-market index declined by 0.4%, concluding at 6,370.17, whereas the Nasdaq Composite experienced a decrease of 0.34%, finishing at 21,100.31. The Dow Jones Industrial Average experienced a decline of 152.81 points, translating to a decrease of 0.34%, and concluded at 44,785.50.

Investors are keenly anticipating remarks from Powell at the central bank’s annual economic symposium. His insights may illuminate the trajectory of interest rates, potentially alleviating ongoing concerns regarding persistent inflation. Fed funds futures indicate a nearly 74% probability that the central bank will implement a rate cut at its upcoming policy meeting in September. Minutes from the Federal Reserve’s July meeting revealed concerns among policymakers regarding the labor market and inflation. However, there was a consensus that it was premature to consider lowering interest rates. Fed governors Christopher Waller and Michelle Bowman expressed dissent regarding the decision to maintain steady rates, representing the first instance of dual board member opposition since 1993.

“Stock valuations are very elevated right now heading into Jackson Hole, and investors have very high expectations that Powell will hint at a September rate cut,” stated Rick Gardner, chief investment officer at RGA Investments. “Anything short of that could prompt investors to withdraw some capital, particularly considering the reduced trading volume in August and a general aversion to risk as the weekend approaches.” Decline of over 4% following the retailer’s failure to meet analysts’ expectations for quarterly earnings, marking the first such occurrence since May 2022. The company reported sales that exceeded projections, however.

This week, the market has experienced significant pressure due to a substantial wave of selling in the technology sector. Investors realized gains from high-performing entities such as Nvidia, Palantir, and Meta Platforms. The S&P 500 experienced a decline of 1.2% week to date, whereas the Nasdaq recorded a loss of 2.4%. The 30-stock Dow was poised for an approximate 0.4% decrease during the period.