Stocks Drop Ahead of Powell’s Speech

Wall Street faced a notable downturn on Thursday, with major indexes suffering their worst performance in weeks as investors braced for a pivotal speech from Federal Reserve Chairman Jerome Powell. The S&P 500 and Nasdaq recorded their steepest daily losses since August 5, each plummeting by over 3%, marking their most significant declines since 2022. Meanwhile, the Dow Jones Industrial Average experienced its worst day since August 7. The trading volume on Thursday was particularly low, with the S&P 500 registering its second-slowest day of trading in 2024, according to data from Yahoo Finance. This lack of activity suggests heightened price sensitivity among investors, a phenomenon often observed during the slower summer months. The anticipation surrounding Powell's upcoming remarks contributed to the cautious sentiment prevailing in the market. As investors digested the implications of potential monetary policy changes, the atmosphere on Wall Street turned increasingly tense. The uncertainty surrounding the Federal Reserve's direction has led to a more cautious approach among traders, reflecting broader concerns about economic stability and inflation. In light of these developments, market participants are closely monitoring Powell's speech for insights that could influence future market trends. The day's trading activity underscores the delicate balance investors must navigate amid fluctuating economic signals and the Fed's ongoing efforts to manage inflation.