US stocks fall for 5th day ahead of Powell's speech
US stocks have dropped for the fifth day straight, with investors holding their breath ahead of Federal Reserve Chair Jerome Powell's talk at the Jackson Hole summit on August 22.
People are hoping for hints about when interest rates—unchanged since December 2024—might finally come down.
Meanwhile, Europe and the UK have already started cutting their rates this year.
Rate cuts only if inflation drops closer to 2%: Powell
Chances of a September rate cut have slipped from 85% to 73%, according to CME FedWatch, as inflation and tariffs become bigger worries.
Powell has stressed that cuts will only happen if inflation drops closer to 2%, though some officials aren't convinced they're needed yet.
On top of that, Trump-era tariffs are making things pricier for both businesses and shoppers—Walmart says its profits are tighter and prices higher because of them.
With Powell's term ending in May 2026, his upcoming speech could set the tone for what's next in the markets.