US stocks edge lower after 8-day winning streak ahead of Powell’s Speech

Tuesday’s market lull came after the longest gain of the year, with traders hoping Jerome Powell would indicate that the Federal Reserve is willing to slash interest rates further when it begins to do so.

After eight straight days of daily gains for the benchmark index, the S&P 500 saw a 0.2% decline, marking the longest run since November. Less than 100 points, or roughly 0.2%, were lost by the Dow Jones Industrial Average, while roughly 0.4% were lost by the tech-heavy Nasdaq Composite.

With the Fed Chair Powell’s speech at the central bankers’ Jackson Hole gathering at the end of the week, stocks are getting ready. Since the central bank should begin cutting rates sooner rather than later, as previously believed, new economic indicators have strengthened the case, and stocks have recovered strongly from a sharp decline in early August.

Given that other Fed members have endorsed easing, Wall Street anticipates that Powell will lay the groundwork for a September rate decrease in dovish remarks on Friday. Instead of discussing when the change will occur, the current discussion centers on whether a 0.5% cut is likely and how future labor statistics may influence that decision.

In terms of business, Lowe’s (LOW) lowered its sales and yearly profit projections in its quarterly results before to the bell. Along with rival Home Depot (HD), the home improvement company noticed a decline in the demand from customers for expensive goods.

Gold (GC=F) continued to rise in the commodities market, surpassing $2,520 per ounce to set yet another record. The price of the metal has increased by more than 20% so far this year as the allure of the safe-haven and non-interest-bearing asset is enhanced by global tensions and potential rate cuts.