Wall St slips as yields perk up; Jackson Hole in sight
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Indexes down: Dow 0.29%, S&P 500 0.42%, Nasdaq 0.81%
Updated at 11:42 a.m. ET/ 1542 GMT
By Shashwat Chauhan and Johann M Cherian
Aug 22 (Reuters) -Wall Street's main indexes fell in volatile trading on Thursday, as rising Treasury yields pressured stocks ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole that could offer clues on the possibility of a rate cut next month.
The yields across government bonds perked up, with the yield on the 10-year note US10YT=RR last at 3.8502% after falling for the last four sessions.
Most megacap and growth stocks slipped. Tesla TSLA.O was leading the losses with a 3.2% drop. The Philadelphia Semiconductor index .SOX also shed 2.4%.
Eight of the 11 major S&P sectors were trading lower, with consumer discretionary .SPLRCD and information technology .SPLRCT the biggest decliners.
Market participants are now focused on the Economic Symposium in Jackson Hole that kicked off on Thursday. Fed chair Jerome Powell is slated to speak on the second day of the event.
"Powell faces the potential to disappoint if not sufficiently dovish (i.e., further reinforcing the case for a near-term cut) which recent Fed governor testimonies have facilitated with their own dovish notes, but also pushing back against expectations of emergency rate cuts," said Naomi Fink, chief global strategist at Nikko Asset Management.
Fed policymakers said on Thursday with inflation well below its highs, they were paying close attention to the U.S. labor market to gauge when to begin reducing interest rates, with one saying they should move "soon."
The benchmark S&P 500 .SPX notched its ninth session of gains out of 10 on Wednesday, after data showed U.S. employers added far fewer jobs for the year ended March 2024 than originally estimated.
The labor market came under increased scrutiny following an unexpected rise in unemployment in July that sparked a selloff earlier this month. Risk sentiment has since improved following other reports hinting at a still resilient economy.
Money markets currently see a nearly 76% chance of an at least 25-basis-point (bps) cut in September, as per the CME FedWatch Tool, and about 100 bps of easing by December, according to LSEG data.
Meanwhile, latest data showed the number of Americans filing new applications for unemployment benefits ticked up in the latest week. A separate reading showed a slowdown in overall U.S. business activity this month.
At 11:42 a.m. ET, the Dow Jones Industrial Average .DJI fell 120.41 points, or 0.29%, to 40,770.08, the S&P 500 .SPX lost 23.38 points, or 0.42%, to 5,597.47 and the Nasdaq Composite .IXIC lost 145.63 points, or 0.81%, to 17,773.35.
Among individual stocks, data cloud analytics firm Snowflake SNOW.N raised its forecast for full-year product revenue. Still, Snowflake's shares were down 13.7%, with analysts attributing the drop to the company not pairing the climb in revenue projections with a rise in margin forecast.
Zoom Video Communications ZM.O added 12.2% after raising its annual revenue forecast, while Advanced Auto Parts AAP.N slid 16.5% after trimming its annual profit forecast.
Declining issues outnumbered advancers by a 1.63-to-1 ratio on the NYSE, and by 1.71-to-1 ratio on the Nasdaq.
The S&P 500 posted 47 new 52-week highs and one new low, while the Nasdaq Composite recorded 67 new highs and 38 new lows.
Reporting by Shashwat Chauhan and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Shinjini Ganguli
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
