Title: Nasdaq Drops 7.2% in 3 Weeks with Fed’s Jackson Hole Symposium Around the Corner
The Nasdaq Composite has experienced a significant decline of 7.2% over the past three weeks, marking its worst three-week drop since late December. This follows a week of losses for Wall Street’s main indices, with the Dow Jones Industrial Average declining 2.2%, the S&P 500 falling 2.1%, and the Nasdaq Composite dropping 2.6%. The struggles on Wall Street in August continue as investors express concerns that the Federal Reserve will maintain higher interest rates for an extended period.
Attention is now turning to the Federal Reserve’s annual Economic Policy Symposium, set to take place in Jackson Hole, Wyoming, starting on Thursday. The highlight of the event will be a speech from Fed Chair Jerome Powell on Friday, where investors will be looking for clues on the outlook for interest rates. According to Investing.com’s Fed Rate Monitor Tool, financial markets currently see an 89% chance of the Fed keeping rates at current levels during its September meeting.
As the second-quarter earnings season winds down, there are only a few corporate results due next week. One company in the spotlight is Nvidia (NASDAQ: NVDA), a market darling known for its chip design and expected growth in artificial intelligence. Nvidia’s earnings report is scheduled for Wednesday, and market analysts anticipate positive results, given the company’s impressive rally this year.
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Looking ahead to the week of August 21 to August 25, one stock likely to attract attention is Dick’s Sporting Goods (NYSE: DKS). Analysts predict that the athletic-gear retailer’s second-quarter earnings will surpass expectations, driven by favorable consumer demand trends. Dick’s will release its Q2 update on Tuesday, August 22, and solid sales growth across its athletic apparel and footwear product categories is expected. Despite the challenging retail environment, Dick’s has consistently outperformed Wall Street’s estimates, highlighting its strong business fundamentals and execution.
On the other hand, Macy’s (NYSE: M) is facing a challenging week ahead. The struggling department store chain is expected to miss estimates for its second-quarter earnings and provide a weak outlook. As shoppers reduce spending on luxury fashion and discretionary goods in the difficult macroeconomic climate, Macy’s is projected to experience a substantial slowdown in both profit and sales growth. Earnings revisions by analysts indicate mounting pessimism ahead of the report, with expectations that Macy’s will cut its full-year sales and profit forecasts.
It remains to be seen how the market will react to these developments, as investors weigh the potential for positive results from Dick’s Sporting Goods against the expected challenges for Macy’s. Traders should remain vigilant as the market volatility persists, keeping an eye on the outcome of the Federal Reserve’s Jackson Hole Symposium and any announcements regarding interest rates.
Disclaimer: The above analysis is based on the author’s opinion and should not be regarded as investment advice. Investors should conduct their own research before making any investment decisions.