2025-08-21 22:05
publication
2025-08-21 22:05
Thursday session brought a continuation of mild declines on New York stock exchanges. Investors can refrain from decisions waiting for the Friday speech of the chairman of the Federal Reserve.
The S & P500 index ended the Thursday trade at 6,370.17 points, which translated into a 0.40%decrease. Although it was the fifth in a row the inheritance session performed by this benchmark, but never once did the daily regression not exceeded 0.6%, and in a total of 5 days S & P5 was barely 1.5%. For now, it is difficult to talk about some more serious withdrawal, let alone correction.
Nasdaq Coposite scored a third session in a row under the line, this time losing 0.34% and finishing with a score of 21,100.31 points. Let's not forget that last Wednesday, both Nasdaq and S&PCly set new records of all time. The industrial average of Dow Jones also went down from record high levels, which decreased by 0.34%on Thursday.
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In market comments, the most space is devoted to the Friday speech of the head of the Fed. Jerome Powell is to speak to the opening of the annual symposium of central bankers in Jackson Hole. At Wall Street, they hope that Powell will signal the September reduction in the federal funds and a return to the loosening of monetary policy. Suffice it to say that the last cut of the feet in Feda took place last year.
– Fears of what tomorrow can get out of Jackson Hole certainly pregnant a risk. After Powell's speech, there may be a decent sale if we get a message more hawk than expectations – warned Adam Turnquist from LPL Financial speaking for Reuters.
The term market for less than 74% values the chances of the September foot cut in Feda – according to the Fedwatch Tool calculations. And it was almost 100%last week. So you can see that faith in the rescue from the central bank is slowly escaping.
On Thursday, great retailers were hit. Wal-Marta shares were overestimated by 4.5% after the commercial giant disappointed with quarterly results. Wal-Mart's qualities were not even helped by raising the year-round result forecast.
There is also speculation around the market that the real risk factor for very high American valuations is not so much the Fed's policy or customs duties of President Trump, but the “drying” of the liquidity reservoir in the form of Reverse Repo operations. In recent days, the value of these operations – under which financial institutions “park” dollars in the federal reserve – fell to just USD 25 billion against over two trillion dollars recorded in spring 2023.
Meanwhile, mixed information came from the macroeconomic front. The August PMI for the United States presented themselves very positively, signaling a return to an increase in economic activity in industry and a still solid economic situation in the service sector. Unexpectedly, the weekly number of applications for unemployment benefit increased (from 224,000 to 235,000), although this is still very low as for historical standards.
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