Wall Street Slips as Investors Await Crucial Powell Remarks

Wall Street drifted lower on Monday as investors paused ahead of a highly anticipated speech by Federal Reserve Chair Jerome Powell. With fresh economic data pointing to persistent weakness in U.S. manufacturing, traders adopted a cautious stance, looking for any signal that could shape expectations for the Fed’s next policy move.Manufacturing activity contracted for the ninth month in a row in November, reflecting softening new orders and rising costs that continue to weigh on factory output. The gloomy data added pressure to markets already uneasy about the direction of interest rates.All eyes are now on Powell, whose remarks later in the day could provide a clearer sense of whether the Fed is leaning toward easing policy in December. Market expectations for a rate cut have surged, with traders assigning high odds to a 25-basis-point reduction this month. Hints of dovish sentiment from some policymakers have only intensified speculation.Investors are also awaiting a delayed reading of the Personal Consumption Expenditures Index, the Fed’s preferred measure of inflation, due at the end of the week. With inflation still a concern, Powell’s message is expected to walk a fine line between supporting growth and maintaining price stability.Major indexes opened in the red, pressured further by a rise in government bond yields. Big retailers captured attention as Cyber Monday spending was projected to hit new highs following a record-breaking Black Friday. Shares of several major retail chains edged upward as consumer enthusiasm remained strong.In contrast, crypto-related stocks sank as bitcoin slipped below the $90,000 mark, extending losses after a rough month for digital assets. Electric vehicle maker Tesla also eased slightly, following a decline in registrations across key European markets.One bright spot came from the tech sector, where Synopsys rallied after securing a major investment from a leading AI chip manufacturer, fueling optimism around future growth in semiconductor design tools.Market breadth remained negative across both the NYSE and Nasdaq, reflecting the overall jittery mood. As the trading day unfolded, investors stayed firmly focused on Powell, hoping his words would offer clarity in a market increasingly driven by uncertainty and shifting economic signals.