Major U.S. markets closed lower Thursday as investors awaited Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium—an elite annual gathering of global central bankers that often sets the tone for global interest rate direction.
Powell is scheduled to speak Friday, and markets are hoping for clarity on whether the Fed will resume monetary policy easing in September. The central bank paused its rate-cutting cycle earlier this year amid persistent inflation concerns.
The S&P 500 slipped 0.4 percent, while the Dow Jones Industrial Average and the Nasdaq both slid 0.3 percent.
Investor sentiment remains cautious, with some analysts betting Powell will strike a more dovish tone—similar to his remarks at last year’s Jackson Hole meeting. The next Federal Open Market Committee (FOMC) decision is due next month.
A dovish signal on Friday could reinforce expectations that the Fed is preparing to cut rates again in response to recent soft labor market data. However, any hint of extended policy tightening or a neutral stance could disappoint markets that have been rallying in anticipation of looser monetary conditions.
While inflation has eased from last year’s peaks, Fed officials have remained guarded, emphasizing the need for data-driven decisions.
Markets will be watching not only for Powell’s tone, but also for any reference to inflation trajectories, labor market trends, and the broader economic outlook—all of which could influence the Fed’s policy path heading into the final quarter of the year.
