Major Stock Indexes Move Lower
On Thursday, major stock indexes, including the Dow Jones Industrial Average, saw a downturn in late-morning trading. This decline followed earlier gains, primarily due to a decrease in tech stock values. Investors are on edge as they anticipate comments from Federal Reserve officials, which could clarify when interest rate cuts might occur.
The S&P 500 and Nasdaq Composite fell by 0.6% and 1%, respectively. Meanwhile, the Dow Jones Industrial Average decreased by 0.4%. Despite this drop, the S&P 500 remains less than 1% away from reaching a new record high. This comes after the July meeting minutes indicated strong support for a rate cut at the committee's September meeting.
Focus on Jackson Hole Symposium
All eyes are now on the Federal Reserve's annual Jackson Hole Economic Symposium, commencing Thursday. A key event will be Fed Chair Jerome Powell's speech on Friday. Investors hope for more confirmation that policymakers will begin reducing the influential fed funds rate next month.
Economic Data Under Scrutiny
Investors also focus on economic data, with weekly jobless claims aligning with expectations and monthly housing sales exceeding forecasts.
Tech Stocks Face Decline
Large-cap tech stocks led the decline in the early hours of Thursday, with notable companies like Nvidia (NVDA) dropping nearly 3%. Other tech giants such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) also saw their shares lose value.
Company-Specific Movements
Snowflake's Earnings Disappointment
Snowflake (SNOW) shares dropped 13% following a disappointing earnings report. The company's net loss and rising costs overshadowed quarterly results, despite raising its annual revenue outlook. Notably, Snowflake's stock is testing support at key levels around $123, $108, and $95.
Urban Outfitters' Sales Concerns
Urban Outfitters (URBN) shares hit a multi-month low as investors concentrated on the retailer’s future sales outlook rather than its second-quarter results, which beat expectations. Although Anthropologie and Free People brands recorded year-over-year sales growth, Urban Outfitters stores saw a 9.3% drop in sales. This sales deceleration led JPMorgan analysts to lower their price target to $42, maintaining a neutral stock rating.
Futures Indicate Varied Market Openings
Futures suggest a mixed opening for major indexes: Dow Jones Industrial Average futures showed a 0.1% increase, S&P 500 futures rose by 0.2%, and Nasdaq 100 futures went up by 0.4%.
Market Indicators and Commodities Update
The yield on 10-year Treasury notes, which reflects expectations of future interest rates, rose to 3.86% after dipping below 3.80% on Wednesday. Additionally, gold futures decreased by over 1% to approximately $2,510 an ounce, while Bitcoin slightly dropped to around $60,500.
