Summary:
- U.S. stocks close with mixed results, with Dow slightly up, S&P 500 flat, and Nasdaq down 2-tenths of 1 percent.
- Market recalibration underway as positive sentiment wanes, driven by ongoing concerns about inflation and the Fed's stance.
- Federal Reserve Chair Jerome Powell to address the Jackson Hole Economic Symposium on Friday, August 25th.
- Estee Lauder's stock drops 3 percent due to reduced sales and profit outlook, while Coinbase Global shares slide 3 percent.
- Bitcoin's price decline impacts cryptocurrency exchange.
U.S. stocks ended Friday little changed as gains in defensive sectors and energy offset weakness in mega-cap growth stocks, while investors look toward next week's speech by Federal Reserve Chair Jerome Powell. The Dow gained fractionally. The S&P 500 finished roughly flat, and the Nasdaq fell 2-tenths of 1 percent.
Market Recalibration
U.S. Bank Wealth Management head of public markets group Lisa Erickson said she sees a recalibration going on in the market. Essentially, you've had a period year to date where investors have generally been on the positive sentiment side, really reacting to the fact that inflation is coming down, that for the most part, economic data has been better than expected, and with hopes that the Fed is going to at least pause if not pivot somewhere here in the next few months. But really, as I think reality has begun to impact investors to a greater degree, they have priced those expectations down to some degree, just recognizing that we still have some path left in the progress to get to a 2 percent inflation target, and the Fed has not pivoted yet.
Powell's Address at Jackson Hole
U.S. Bank Powell addresses the annual Jackson Hole Economic Symposium Friday, August 25th.
Stock Movers
Stock movers included Estee Lauder, which dropped 3 percent after cutting its annual sales and profit forecast in part due to weaker demand in Asia, and shares of Coinbase Global slid 3 percent.
Bitcoin's Price Impact
As a two-month low in the price of Bitcoin hit the cryptocurrency exchange.