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Wall Street Indexes Decline Ahead of Powell's Jackson Hole Speech
22 Aug
Summary
- Investors await hawkish remarks from Fed Chair Powell
- Walmart's quarterly results disappoint, weighing on sentiment
- Traders reduce bets on a September rate cut
On August 22nd, 2025, Wall Street's main indexes fell as investors braced for potentially hawkish remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium the following day. Traders were closely monitoring Powell's speech for any clues on U.S. interest rate cuts in September, following recent job market weakness.
Concerns about the likelihood of rate cuts and big-box retailer Walmart's disappointing quarterly results also dampened market sentiment. Walmart had raised its fiscal year sales and profit forecasts, driven by strong demand from shoppers across all income levels, but missed quarterly profit estimates and flagged higher costs from tariffs. This caused Walmart's shares to tumble 4.5%.
Traders have pared down bets on a 25-basis-point interest rate cut in September to 79% from 99.9% the previous week, according to data compiled by LSEG. Multiple policymakers have also struck a cautious tone and acknowledged the need to stay data-dependent, adding to the uncertainty.
