US close: Rally loses steam as investors nervously await Powell speech

20th Aug 2024 22:50

(Sharecast News) - US stocks inched lower on Tuesday, bringing Wall Street's longest winning streak of 2024 to a close with investors taking profits after eight straight days of gains for the S&P 500 and Nasdaq.

The Dow and S&P 500 both finished the session down 0.2% while the Nasdaq slipped 0.3%.

After a stellar run over the past two weeks - which saw the S&P 500 surge 7.9% and the Nasdaq jump 10.4% on the back of improving economic data and rising rate-cut expectations - risk appetite was dampened ahead of two major events for financial markets in the coming days: the release of minutes from the Federal Reserve's most recent policy meeting on Wednesday and the Jackson Hole symposium on Friday.

Jackson Hole, which will see central bankers from across the world gather to discuss policy matters, will feature a hotly anticipated speech from Fed chair Jerome Powell, with investors eagerly awaiting any hint at what how the Fed will alter interest rates over the rest of the year.

"Maybe it's just a case of the market catching its breath, biding time as the anticipation builds for Fed chair Powell's grand entrance at the Jackson Hole showdown later this week," said Stephen Innes, managing partner at SPI Asset Management.

"After all, the markets have been on a tear, bouncing back from the early August chaos as fresh economic data fanned the flames of hope for a sooner - and perhaps deeper - rate cut from the Fed."

The US Dollar Index, which tracks the price of the greenback against a basket of other currencies, was down a further 0.5% at 101.37, its lowest in seven months on anticipation of monetary easing. The move sent gold prices to new record highs, with spot gold touching a new peak of $2,531.60 earlier in the day.

Market movers

Gold miners were among the best performers of the day, tracking bullion higher, such as Barrick Gold, Newmont, Kinross, Harmony Gold Mining Company and Franco-Nevada.

Struggling aerospace giant Boeing dropped sharply after grounding its 777X test fleet - a model which is already years behind schedule - due to damage in one of the aircraft's structures.

Johnson & Johnson inched higher after agreeing to buy V-Wave, a privately held company focused on developing treatment options for patients with heart failure, for up to $1.7bn.

Palo Alto Networks shares advanced after the cybersecurity company beat both profit and revenue expectations in its fourth quarter.

Home improvement retailer Lowe's slipped after posting quarterly revenues that fell short of estimates and lowered its full-year profit guidance.

Meanwhile, Bank of America declined after a regulatory filing revealed that Berkshire Hathaway has sold off more shares, offloading 13.9m to take its holding down to 11.9%.

Dow Jones - Risers

Procter & Gamble Co. (PG) $170.41 1.18%

Home Depot Inc. (HD) $367.27 1.16%

Walmart Inc. (WMT) $74.54 1.11%

Microsoft Corp. (MSFT) $424.80 0.78%

International Business Machines Corporation (CDI) (IBM) $196.03 0.67%

Merck & Co. Inc. (MRK) $115.14 0.63%

Visa Inc. (V) $268.04 0.59%

Coca-Cola Co. (KO) $69.38 0.58%

Cisco Systems Inc. (CSCO) $50.24 0.52%

3M Co. (MMM) $127.70 0.49%

Dow Jones - Fallers

Boeing Co. (BA) $172.10 -4.20%

Intel Corp. (INTC) $20.99 -2.46%

Dow Chemical Co. (DOW) $52.72 -1.73%

Chevron Corp. (CVX) $144.69 -1.46%

Goldman Sachs Group Inc. (GS) $497.34 -1.45%

Salesforce.Com Inc. (CRM) $261.84 -1.33%

Walt Disney Co. (DIS) $89.74 -1.19%

Walgreens Boots Alliance, Inc. (WBA) $10.73 -1.11%

Travelers Company Inc. (TRV) $217.02 -0.88%

McDonald's Corp. (MCD) $285.63 -0.67%

S&P 500 - Risers

CenturyLink Inc. (LUMN) $6.15 6.77%

Darden Restaurants Inc. (DRI) $155.15 3.65%

Paypal Holdings Inc (PYPL) $71.89 3.54%

Eli Lilly and Company (LLY) $949.97 3.05%

Take-Two Interactive Software Inc. (TTWO) $154.81 2.86%

Ipg Photonics Corp. (IPGP) $69.89 2.49%

H&R Block Inc. (HRB) $66.60 1.96%

Incyte Corp. (INCY) $64.38 1.77%

Albemarle Corp. (ALB) $84.19 1.74%

Edwards Lifesciences Corp. (EW) $69.36 1.64%

S&P 500 - Fallers

Phillips 66 Common Stock (PSX) $132.39 -4.99%

Helmerich & Payne Inc. (HP) $32.78 -4.96%

DENTSPLY Sirona Inc. (XRAY) $24.31 -4.82%

Valero Energy Corp. (VLO) $141.26 -4.70%

Boeing Co. (BA) $172.10 -4.20%

Marathon Petroleum Corporation (MPC) $171.61 -4.07%

FMC Technologies Inc. (FTI) $25.90 -3.82%

Nektar Therapeutics (NKTR) $1.28 -3.76%

HF Sinclair Corporation (DINO) $47.27 -3.61%

Resmed Inc. (RMD) $223.15 -3.52%

Nasdaq 100 - Risers

Sirius XM Holdings Inc (SIRI) $3.25 6.91%

Paypal Holdings Inc (PYPL) $71.89 3.54%

Take-Two Interactive Software Inc. (TTWO) $154.81 2.86%

Incyte Corp. (INCY) $64.38 1.77%

Netflix Inc. (NFLX) $698.54 1.45%

Biomarin Pharmaceutical Inc. (BMRN) $93.84 1.16%

Texas Instruments Inc (TXN) $202.54 0.94%

Qurate Retail Inc. (QRTEA) $0.61 0.89%

Microsoft Corp. (MSFT) $424.80 0.78%

Starbucks Corp. (SBUX) $93.01 0.77%

Nasdaq 100 - Fallers

DENTSPLY Sirona Inc. (XRAY) $24.31 -4.82%

JD.com, Inc. (JD) $28.19 -4.57%

Trip.com Group Limited (TCOM) $41.28 -3.80%

Align Technology Inc. (ALGN) $233.23 -2.82%

NetEase Inc. Ads (NTES) $90.22 -2.52%

Illumina Inc. (ILMN) $132.51 -2.49%

Intel Corp. (INTC) $20.99 -2.46%

Baidu Inc. (BIDU) $87.98 -2.44%

Applied Materials Inc. (AMAT) $206.16 -2.27%

Charter Communications Inc. (CHTR) $347.32 -2.18%