US Stocks Decline as Bond Yields Rise Ahead of Fed Chair Powell's Speech

Market Performance and Economic Data

• 📉 Major US indices closed lower, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all declining, though off their daily lows.
• 📈 The Russell 2000 was the outlier, finishing the day in the green, up two-tenths of 1%.
• 🏭 Stronger-than-expected manufacturing PMI data raised concerns about persistent inflation pressures, leading traders to trim bets on September rate cuts.
• 📊 While jobless claims indicated a slowing labor market, the robust factory data influenced market sentiment.

Federal Reserve and Interest Rate Outlook

• 🎤 All eyes are on Fed Chair Jerome Powell's speech at the Jackson Hole symposium for potential policy signals.
• 📉 Money markets now price in a roughly 70% chance of a rate cut in September, down from over 90% a week prior.
• ⚠️ Former Dallas Fed President Robert Kaplan suggested that while a September cut might occur, it may not signal the start of a dovish cycle due to data not fully supporting it.

Corporate Earnings and Stock Movements

• 💻 Intuit reported fourth-quarter adjusted EPS and net revenue above consensus estimates, but its stock moved lower in after-hours trading, potentially due to concerns about its full-year outlook.
• 🛍️ Ross Stores beat EPS estimates, but its comparable sales growth slowed year-over-year, and its full-year EPS forecast was below analyst expectations, leading to a stock decline.
• ☁️ Workday announced a definitive agreement to acquire Paradox, an AI company focused on conversational AI for candidate experience, alongside reporting second-quarter results that met or slightly exceeded estimates.
• 🚀 Zoom reported second-quarter results that topped estimates and upgraded its full-year revenue and operating income outlook, causing its stock to rise in after-hours trading.
• 🛒 Walmart shares fell significantly after reporting a profit miss for the first time in three years, overshadowing higher sales and leading to a dismal outlook for consumer-oriented companies.
• 💄 Coty Inc. shares experienced their worst daily performance since March 2020, down 22%, after forecasting steep sales declines, citing