Newscasts - Wall Street closes down as investors brace for Powell's speech

Cracker Barrel Old Country Store

21/08/2025 23:45

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Source: 'Reuters - Business videos'

Description: Wall Street's main indexes fell on Thursday as investors feared potentially hawkish remarks by the Federal Reserve chair on Friday that could spark volatility, while big-box retailer Walmart's quarterly results dampened sentiment. Lisa Bernhard has more.

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Video Transcript:

US stocks fell on Thursday, with all three of Wall Street's main indexes losing about 0.3% or slightly more. Investors feared potentially hawkish remarks from Federal Reserve Chair Jerome Powell when he speaks Friday from the central bank's annual symposium in Jackson Hole, Wyoming. With traders pricing in a roughly 80% chance of a September rate cut, any hints that's off the table could spark market volatility. A weakening labor market combined with an uptick in inflation has put the Fed in a tough spot, says Chris Carey, VP Portfolio Manager at Carnegie Investment Counsel.

The Fed has a bit of a unique game to play from the Chairman's position, which is that for the first time in quite a while, the majority of his governors aren't all on the same page with regards to which direction to take rates. I think that we have a 25-basis-point cut locked in. The general market consensus we might see another 25 basis points between now and the end of the year. But really, it's a better idea of policy direction and how Fed Chair Powell is going to be able to corral the rest of his governors to be on board and set a clear path forward.

Stocks on the move Thursday included Walmart, which fell 4.5% after the retail giant raised its fiscal year sales and profit forecasts, but missed quarterly-profit estimates and flagged higher costs from tariffs. Shares of Coty plummeted more than 21% after the beauty products maker forecast lower current-quarter sales on weak US spending. And shares of Cracker Barrel Old Country Store shed more than 7% after the restaurant chain unveiled its new logo, which no longer includes a man leaning on a barrel.