Wall Street closes down as investors brace for Powell's speech
By Johann M Cherian, Sanchayaita Roy and Carolina
Mandl
Thu August 21, 2025 6:11 PM
The entire day was one big spiral down on all three indexes, mainly because investors are bracing for hawkish comments from Powell tomorrow. So pessimistic are they of a dovish stance that the odds of a September rate cut are now actually in doubt after being considered a sure thing for such a long time now, and the odds on this single day have been suddenly slashed a whopping 21 points from 99.9% last week to 79% today.
Walmart turning in a disappointing Q2 didn’t help at all either. Other slings and arrows included improving business activity and new home sales which, under ordinary circumstances would be good news, but is not what the Fed is looking for to keep inflation down. It is predicted that the market will fall again tomorrow if indeed Powell does come off hawkish. Volume at 12.28 billion was way below (by some 5 billion) the 4-week average of 17.08 billion.
DJ: 44,938.31 +16.04 NAS: 21,172.86
-142.09 S&P: 6,395.78
-15.59 8/20
DJ: 44,785.50 -152.81 NAS: 21,100.31 -72.54 S&P: 6,370.17 -25.61 8/21
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