It was an eventful day in the US stock market on Thursday, as tech stocks led the losses while investors awaited a key speech from Fed Chair Jerome Powell. The S&P 500 dropped 0.5%, the Nasdaq Composite fell over 1%, and the Dow Jones Industrial Average closed 0.4% lower.
The market was on high alert for any shift in tone from policymakers at the Fed’s Jackson Hole symposium, especially after minutes from the Fed’s last meeting indicated a possible rate cut in July. This pivot in monetary policy could be a gamechanger for investors, as hopes for lower rates have already helped the market recover from losses earlier in August.
On the economic front, initial jobless claims rose to 232,000 last week, matching expectations. The official revision to payrolls also suggested a cooling labor market, which could influence the depth of the Fed’s potential rate cuts.
In corporate news, Paramount shares rose as media executive Edgar Bronfman Jr. sweetened his takeover bid to $6 billion. On the other hand, Snowflake’s stock sank as its sales outlook fell short of investors’ expectations for an AI boost.
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