Dow futures plunged 150 points on Thursday as investors remained cautious about earnings and the Fed’s Jackson Hole meeting.
The Dow was off about 0.1% to 0.3%, with investors watching Walmart’s results and waiting for Jerome Powell’s remarks on policy. Tech volatility and inflation worries kept sentiment muted, giving markets a late-summer, wait-and-see feel.
Tech stocks were still under pressure, with inflation worries and the risk of more rate hikes hanging over the market.
Investors are also waiting on economic data later this week, trying to square some optimism about the economy with concern over tighter policy.
5 things to know before Wall Street opens
1. Walmart’s second-quarter numbers show the retail giant is still pulling in strong sales even as costs bite. Revenue came in at $177.4 billion, up almost 5% from a year ago, helped by a 25% jump in online orders as more shoppers used pickup and delivery.
Profit took a hit, though. One-time legal and restructuring charges dragged operating income down about 8%. Stripping out currency moves, it was basically flat. Earnings per share landed at $0.68.
Even with those headwinds, Walmart bumped up its guidance for the year, a sign it’s confident it can keep momentum going despite tariffs, inflation, and a tricky consumer backdrop.
2. Walmart’s focus on low prices is keeping shoppers loyal as inflation drags on. US same-store sales are expected to rise a little over 4%, helped by stronger traffic and bigger basket sizes.
Sam’s Club is also pulling its weight, with growth in both members and sales. Analysts point out that Walmart’s size gives it more room to absorb tariffs, which keeps its pricing edge intact.
3. Investors are looking to Jerome Powell’s comments at the Jackson Hole gathering this week. His take on interest rates, and whether cuts could begin in September will be watched closely.
What he says on inflation and growth could set the tone for how markets move next.
4. Earlier this week, some of the biggest tech names like Nvidia, AMD, Palantir, and Meta finally cooled off after months of steady gains.
The slide reignited the usual questions: have valuations run too far, too fast, and will regulators start taking a harder look at the sector?
That dip spilled over into the broader market mood. Investors are a bit more cautious on tech exposure with earnings still to come and the Fed set to update its policy outlook.
Even so, the sector remains the market’s swing factor, the same names that carried sentiment higher earlier in the year are now the ones traders worry about when nerves set in.
5. Outside of earnings and the Fed, traders have their eyes on this week’s housing and consumer spending reports.
Those numbers will be a good test of how resilient the economy really is at a time when the labor market looks softer and inflation hasn’t fully cooled.
Depending on what comes through, the data could swing sentiment either giving the Fed room to ease up or reminding markets that policymakers can’t let their guard down yet.
With August almost over, investors aren’t in a rush to make big bets until they see how these pieces land.
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