US equities opened in the red on Thursday, extending this week’s weakness as investors braced for signals on the Federal Reserve’s rate path from Jackson Hole.
The Dow Jones Industrial Average slipped about 240 points, or 0.5%, in early deals, dragged down by a sharp drop in Walmart shares. The S&P 500 fell 0.4%, while the Nasdaq Composite was lower by 0.5%, with selling pressure persisting in large-cap technology stocks.
Walmart slid more than 4% despite topping sales expectations in its latest quarter, after the retail giant posted a rare earnings miss—its first since May 2022.
Attention is firmly on Fed Chair Jerome Powell, who is scheduled to speak Friday at the central bank’s annual Jackson Hole symposium. Futures tied to the Fed funds rate are currently pricing in nearly an 80% probability of a rate cut in September, according to CME data.
Minutes from the Fed’s July meeting revealed concerns about both the labor market and inflation, while also showing dissent within the board—two governors favored a rate hike, the first such split since 1993.
The market mood has been unsettled this week by heavy selling in tech names such as Nvidia, Palantir, and Meta. Analysts caution that investors may be underestimating the risk of a deeper pullback. “This mindset suggests a dangerous degree of complacency,” said Adam Crisafulli of Vital Knowledge.
So far this week, the S&P 500 has lost 0.8% and the Nasdaq 2.1%, while the Dow is little changed.
Asian Markets
Asian markets ended mixed on Thursday, reflecting investor caution ahead of Powell’s address:
- •Australia’s index rose to a record high.
- •Japan’s Nikkei eased by about 0.6% after recent gains.
- •South Korea’s KOSPI rebounded around 0.7% from a six-week low.
- •Mainland Chinese blue chips inched higher, while Hong Kong’s Hang Seng slipped slightly.
European stocks largely treaded water, with the regional STOXX 600 index showing little movement:
Markets remained flat, reflecting a cautious stance amid anticipation of the Federal Reserve’s signal at Jackson Hole.
In the UK, the FTSE 100 dipped 0.2%, with the broader FTSE 250 down 0.5%. Weakness in consumer and healthcare sectors—alongside a sharp plunge in WH Smith stocks (–41.7%) following a downgraded profit outlook—drove the losses. Aerospace, defense, and energy stocks, however, saw modest gains.
Elsewhere, defense stocks gained amid geopolitical developments, including North Sea oil discoveries boosting energy names like Aker BP (up ~3%), though Novonesis shares fell post-earnings.
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