Wall Street indices opened in negative territory as President Donald Trump escalated his conflict with the Federal Reserve by firing Governor Lisa Cook. The S&P 500 opened 0.06% lower at 6,435.25, the Dow Jones Industrial Average dropped 0.12% to 45,228.15, and the Nasdaq Composite declined 0.05% to 21,438.91. The market decline coincided with the intensifying dispute between Trump and the Federal Reserve.

This development comes as investors were already processing Federal Reserve Chair Jerome Powell's recent comments at Jackson Hole and anticipating Nvidia's upcoming quarterly earnings report.

Market Performance

The major indices all closed in negative territory, reflecting cautious market sentiment:

Fed Policy Expectations

Investors are closely watching for signals on potential interest rate cuts following Powell's remarks. The probability of a 25-basis-point rate cut in September has increased, with traders now assigning an 84% likelihood according to CME's FedWatch tool.

Sector Performance

Nine out of eleven S&P 500 sectors ended the day lower:

• Consumer staples led the decline, dropping 1.62%
• Healthcare followed closely, falling 1.44%

Notable Stock Movements

Looking Ahead

Investors remain focused on Nvidia's upcoming earnings report, which could have significant implications for the tech sector and broader market sentiment. Currently, Nvidia represents about 8% of the S&P 500 index. Additionally, market participants will continue to scrutinize economic data and Fed communications for further insights into the central bank's monetary policy trajectory.

As the market navigates through these developments, including the unexpected firing of Fed Governor Lisa Cook, volatility may persist in the short term, with particular attention on tech stocks and sectors sensitive to interest rate changes.

Wall Street experienced a downturn on Thursday as investors positioned themselves ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech at the Jackson Hole Economic Policy Symposium. The market's cautious stance was reflected across all major indices, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all registering declines.

Market Performance

The day's trading saw broad-based losses:

• Dow Jones Industrial Average: Down 0.34% to 44,785.50
• S&P 500: Fell 0.40% to 6,370.17
• Nasdaq Composite: Declined 0.34% to 21,100.31

Investor Sentiment

Traders have significantly reduced their expectations for a September rate cut, with the probability dropping from 99.9% last week to 79%. This shift in sentiment comes as market participants eagerly await insights from Powell's speech, scheduled for Friday.

Sector Performance

The market's decline was widespread, with nine out of eleven S&P 500 sectors closing in negative territory. Notable sector movements included:

• Consumer Staples: Led the downturn, falling 1.18%
• Technology: Continued to show weakness, with major tech stocks under pressure

Corporate Highlights

Several major corporations faced challenges:

• Walmart: Shares tumbled 4.5% despite raising its fiscal year guidance. The retail giant missed quarterly profit estimates and cited higher tariff costs as a concern.
• Coty: The beauty company's stock plummeted 21.4% after forecasting lower quarterly sales, attributed to weak consumer spending in the United States.

Tech Sector Woes

The technology sector remained under pressure, with notable declines in high-profile stocks:

• Nvidia
• Meta
• Amazon
• AMD

Market Dynamics

Trading volumes were lighter than usual, with 12.28 billion shares changing hands compared to the 20-day average of 17.08 billion. This reduced activity suggests a cautious approach from investors as they await more clarity on the economic outlook and monetary policy direction.

As markets brace for Powell's speech, all eyes will be on the Jackson Hole symposium for potential signals about the Federal Reserve's future policy decisions and their implications for the broader economy.