.png){kind=logo}
The S&P 500 lost five days in a row, extending its declines on fears regarding the economy and company earnings reports. The index declined by 0.3%, with technology stocks being sold heavily. The Dow Jones Industrial Average also showed losses, declining 0.4%, as Walmart led the way into the red after a negative quarterly results announcement.
Meanwhile, the NASDAQ Composite also followed suit, losing roughly 0.4%. Investors are currently focusing on Federal Reserve Chairman Jerome Powell's upcoming address at the Jackson Hole Economic Symposium.
Walmart's shares dropped over 4% after it announced quarterly earnings. Although the company reported better sales compared to expectations, it has failed to produce the expected earnings since May 2022.
Walmart clocked in higher sales than market expectations, with profits below analysts' predictions. In its earnings results, the firm cited rising costs and investments to develop its workforce as some of its challenges. But this earning shortfall overshadowed the overall sales in its United States stores.
The company increased guidance to annual expectations, indicating a positive outlook despite the quarter's results slump. Walmart's failure to deliver on its earnings expectations has caused concern among investors seeking better performance among other retail players in the US. The decline in the stock market has been due to retailer share losses since its earnings release.
As investors await Powell's address on Friday, they are keen to know about the prospects of Federal Reserve rate reductions. Markets suggest a nearly 70% chance of a reduction at the Fed meeting in September.
This follows some economic data indicating that inflation risks may be persistent despite labor market strength. Investors are becoming more worried about whether the Fed will be able to offer enough assurance to stem fears of future rate increases.
The US Treasury market, in the meantime, experienced a significant surge in yields as the 10-year yield rose to 4.33%, up 4.30% in the last closing. The increased bond yields also show the market's worry about maintaining inflationary pressure.
Several Fed officials, including President Jeff Schmid of Kansas City and Raphael Bostic of Atlanta, have commented on the economic outlook, with some expressing comfort that the current stance of the US central bank is a suitable one, and others keeping a closer eye on the dangers of inflation.
Also Read: US Stock Market Today: US Stocks Plummet as NASDAQ Falls 1.1%, S&P 500 Slips 0.6%
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
