Indexes fell Thursday as investors wait for comments on rate cuts and the economy from Jerome Powell at the Jackson Hole conference on Friday.
Indexes ended lower Thursday as investors awaited comments from Federal Reserve Chair Jerome Powell at the Federal Reserve’s Jackson Hole conference on Friday.
The S&P 500 and the Dow Jones Industrial Average closed slightly lower, though the Nasdaq Composite logged a bigger drop of 1.6%. Treasury yields spiked, with the 10-year bond yield up eight basis points 3.863%
Investors are eager for any indication of how steep cuts will be, with markets pricing in 100% odds the Fed starts loosening monetary policy at next month’s FOMC meeting.
The Fed’s July meeting minutes, released Wednesday, said “the vast majority” of officials said a September ease in policy would “likely be appropriate” if economic data continues “to come in about as expected.”
According to the CME FedWatch tool, investors see a 25 basis point cut as a near certainty next month, with smaller odds of a 50 basis point cut.
