The stock market is caught in a holding pattern, awaiting Federal Reserve Chair Jerome Powell’s keynote speech at Jackson Hole. But there's a chill in the air: After five days of S&P 500 declines and a 0.34% drop in the Dow Thursday, investors are less certain about the timing and scale of rate cuts. CME FedWatch odds for more than two quarter-point rate cuts this year have fallen to 27% — down from 37% just a day earlier — as policymakers signal caution stemming from persistent inflation and labor market jitters.
Wall Street is also digesting a US-EU trade deal that capped pharma and semiconductor tariffs at 15% (down from Trump’s threats of up to 250%), but left aluminum and steel at a hefty 50% tariff. Consumer staples and tech stocks remained soft, while a few bargains in discount retail provided minor bright spots. The message? Nervous market, no clear safe haven.
