Stocks were trading near session lows in afternoon trading Thursday as the Federal Reserve’s annual economic symposium got underway in Jackson Hole, Wyoming. The Dow Jones Industrial Average and other major stock indexes fell sharply in the stock market today as investors waited for Fed Chairman Jerome Powell to speak on Friday morning.
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What the employment data means for the Fed and interest rates
The Dow Jones Industrial Average is down 0.6% in recent moves, with the blue-chip index trading well above its 50-day and 21-day moving averages.
Meanwhile, the S&P 500 fell 0.9%. Despite Thursday’s big losses, the S&P is still shy of the all-time high it hit in July. Energy and financials rose, while technology and consumer discretionary struggled.
The Nasdaq Composite Index’s decline extended to 1.4% and was trading near the session’s lows after the tech-heavy index tested its 50-day moving average in late afternoon trading.
The Innovator IBD 50 ETF (FFTY) was down a modest 0.2% on the stock market today, while the Russell 2000 small cap stocks fell 0.6%.
The yield on the benchmark 10-year Treasury note rose 8 basis points to 3.86%.
Trading volume on the Nasdaq increased and on the New York Stock Exchange decreased compared to the same time on Wednesday.
Updated 1:49 p.m.
Investors await Fed Chairman Powell’s speech
Powell will deliver the keynote speech Friday at the Jackson Hole summit ahead of the Federal Reserve’s mid-September meeting, where investors are hoping he will give an indication of whether the central bank will cut interest rates.
But other economic news coming out next week could also influence the path to a rate cut, including second-quarter GDP data and July results for personal income and spending, the Fed’s preferred inflation gauge, followed by August employment data on Sept. 6 and retail sales data on Sept. 17, ahead of the Sept. 19-20 meeting.
In stock price action on Thursday, PagSeguro Digital (PAGS) fell below its 50-day and 200-day moving averages, triggering a sell signal. The stock is on track to fall for a third straight day since the company released its second-quarter earnings on Tuesday.
Updated 12:09 p.m.
Nvidia shares fall today
Nvidia (NVDA) fell after analysts at Citi maintained a buy recommendation and set a $150 price target. The analysts also expect the company’s shares to hit new highs after the company’s second-quarter results are released next week. They also expect the outlook for Blackwell, the company’s latest AI chip, to be strong.
The stock doesn’t currently offer any buy points, but possible entry points are at 136.15 and 140.76, according to the IBD MarketSurge chart analysis tool.
Private sector output, as measured by the S&P Global Flash U.S. Composite PMI index, came in at 54.1 in August. Economists had expected it to fall to 53.3 from July’s final reading of 54.3.
Updated 10:37 a.m. ET
Unemployment claims, home sales
According to Econoday, weekly new jobless claims came in at 232,000, below the expected 234,000. Meanwhile, in the housing market, existing home sales rose to 3.95 million in July from 3.89 million in June, beating the 3.9 million expected.
Amid Thursday’s breakout of the MarketSurge Growth 250, Manhattan Associates (MANH) rose above a 261.89 buy point from a cup and handle pattern. Intuit (INTU) struggled to break out of a 674.34 buy point, and AppLovin (APP) also struggled to break out of a 91.91 entry.
Magnificent Seven stock Meta Platforms (META) broke above a 542.81 buy point on the stock market today, but the stock later fell below the entry price.
Dow Jones Stock Index
Among Dow Jones stocks, IBM (IBM) is just below a buy point of 196.26 in a cup-with-handle base, according to IBD MarketSurge charting tools. The stock rose above its entry for the first time on Wednesday.
Walmart (WMT) shares surged last week after the company reported strong second-quarter results, extending its recent gains, climbing nearly 1% to hit another all-time high.
The Dow Jones Industrial Average was mixed, with tech and healthcare stocks upping the ante.
Today’s stock market trends
Several stocks sold off after earnings reports on Thursday. Williams-Sonoma (WSM) fell sharply after the company reported second-quarter earnings and lowered its full-year sales outlook. The stock fell to levels approaching its 200-day moving average.
BJ’s Wholesale Club (BJ) and Urban Outfitters (URBN) were the latest retailers to report earnings. BJ’s shares had been rising on earnings, but they fell below their 50-day moving average and below their baseline after July-quarter sales fell short of expectations. Urban Outfitters fell below its 200-day moving average after same-store sales fell short of expectations.
Peloton (PTON) shares surged above its 50-day and 200-day lines after the company reported a smaller-than-analyst-expected loss for the June quarter.
In the software space, Snowflake (SNOW) fell following weak guidance and fell below its descending 50-day line.
Among Chinese stocks, Baidu (BIDU) also fell below its 50-day mark after second-quarter sales missed expectations but profits beat expectations. Chip design technology provider Synopsys (SNPS) gave up earlier gains after strong July-quarter results and an increased current-quarter sales outlook. The stock fell to its 200-day mark.
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