US stocks drop more than 1% after Jackson Hole kicks off

The US stock market experienced losses due to a stronger USD and hawkish remarks by Federal Reserve officials at the Jackson Hole Symposium. The SPX erased gains from Wednesday, retreating to 4,380.

Fed officials Thomas Barkin and Susan Collins sounded hawkish at the beginning of the symposium. Jerome Powell’s speech on Friday, which could emphasize the need for rate cuts to be postponed to 2024, led to a rise in US yields, causing stocks to lose interest.

The next set of data from the Fed, including an additional jobs report and inflation reading, will be closely monitored for investors to model their expectations. The daily chart suggests a neutral to bearish outlook for the SPX.

Support levels are 4,350, 4,330, 4,310 (100-day SMA), and resistance levels are 4,400, 4,460 (20-day SMA), and 4,480.

Each of the three major US stock indices lost more than 1% of their value on Thursday, as investors grew jittery ahead of Powell’s speech and the Nasdaq fell following recent advances.

After reaching a record high, Nvidia shares closed marginally higher, while the S&P 500’s sectors all declined, with a semiconductor index falling by 3.4%. Before Powell’s address on the economy’s future is set for Friday, central bankers and other economic decision-makers met at Jackson Hole, Wyoming.

The US stock market experienced losses due to a stronger USD and hawkish remarks by Federal Reserve officials at the Jackson Hole Symposium. The SPX erased gains from Wednesday, retreating to 4,380.

Fed officials Thomas Barkin and Susan Collins sounded hawkish at the beginning of the symposium. Jerome Powell’s speech on Friday, which could emphasize the need for rate cuts to be postponed to 2024, led to a rise in US yields, causing stocks to lose interest.

The next set of data from the Fed, including an additional jobs report and inflation reading, will be closely monitored for investors to model their expectations. The daily chart suggests a neutral to bearish outlook for the SPX.

Support levels are 4,350, 4,330, 4,310 (100-day SMA), and resistance levels are 4,400, 4,460 (20-day SMA), and 4,480.

Each of the three major US stock indices lost more than 1% of their value on Thursday, as investors grew jittery ahead of Powell’s speech and the Nasdaq fell following recent advances.

After reaching a record high, Nvidia shares closed marginally higher, while the S&P 500’s sectors all declined, with a semiconductor index falling by 3.4%. Before Powell’s address on the economy’s future is set for Friday, central bankers and other economic decision-makers met at Jackson Hole, Wyoming.