Stocks had a rough session Thursday, choking off a two-day rally with sharp losses that got worse toward the close. The Dow Jones Industrial Average and other major indexes were down sharply on the stock market today as investors awaited Fed Chair Jerome Powell's speech.
The Nasdaq composite took the brunt of it as it ended the day down 1.7%, just above session lows. The tech-heavy index also tested its 50-day moving average in late afternoon action.
Meanwhile, the S&P 500 fell 0.9%, also finishing near session lows. Though it was down substantially Thursday, the S&P remains within striking distance of its all-time peak, reached in July. Energy and financial sectors gained while the technology and consumer discretionary groups lagged.
The Dow Jones index pared some of its losses and ended the session down 0.4%. The blue-chip index remains well above its 50-day moving average as well as its 21-day exponential moving average.
Small caps on the Russell 2000 fell 1%, while the Innovator IBD 50 ETF saw a smaller loss of 0.6% on the stock market today.
The yield on the benchmark 10-year Treasury note added nine basis points to 3.87%.
Volume was higher on the Nasdaq and lower on the New York Stock Exchange compared with the same time on Wednesday.
Updated 1:49 p.m. ET
Investors Wait For Fed Powell's Speech
On Friday, Powell will give a keynote speech at the Jackson Hole summit, before the Federal Reserve meeting in mid-September. Investors are looking for an indication from Powell on whether the Fed will cut rates.
But other economic news could punctuate the path to a rate cut next week. Among them are second-quarter GDP data along with the Fed's preferred inflation gauge — the personal income and outlays result for July. After that, August's payroll data, due Sept. 6, and retail sales data on Sept. 17 will precede the Sept. 19-20 meeting, as well.
In stock action Thursday, PagSeguro Digital fell below its 50- and 200-day moving averages, triggering a sell signal. Shares are on track for a three-day losing streak after second-quarter results were announced Tuesday.
Updated 12:09 p.m. ET
Nvidia Falls In Stock Market Today
Nvidia reversed lower after analysts at Citi gave it a price target of 150 while holding a buy rating. Analysts also see the stock hitting a new high after its second-quarter results are announced next week. They also and expect a strong outlook for its newest AI chip, Blackwell.
The stock does not offer a buy point now, although there are possible entries at 136.15 and 140.76, according to chart analysis tools on IBD MarketSurge.
Early estimates of private-sector output as measured by the S&P Global Flash U.S. Composite PMI index came in at 54.1 for August. Economists had expected it to fall to 53.3 after July's final reading of 54.3.
Updated 10:37 a.m. ET
Jobless Claims, Home Sales
Weekly initial jobless claims of 232,000 were lower than views of 234,000, according to Econoday. Meanwhile in housing, existing home sales for July rose to 3.95 million vs. estimates of 3.9 million after June's 3.89 million units.
Among Thursday's breakouts in the MarketSurge Growth 250, Manhattan Associates rose above a buy point of 261.89 from a cup-with-handle pattern. Intuit struggled to get past a buy point of 674.34, as did AppLovin, which tried to move past an entry at 91.91.
Magnificent Seven stock Meta Platforms broke out past a 542.81 buy point on the stock market today, although shares later dipped below the entry.
Stocks Skid Before Powell; Cava Jumps Late On Earnings
Dow Jones Stocks
Among Dow Jones stocks, IBM is just below a buy point of 196.26 in a cup-with-handle base, according to IBD MarketSurge's chart tools. The stock first topped the entry Wednesday.
Walmart added to recent gains after gapping up on a strong second-quarter report last week. Shares were up nearly 1% and at another record high.
Tech and health care stocks were mixed in the Dow.
Movers In Stock Market Today
Several stocks sold off after earnings on Thursday. Williams-Sonoma dived after announcing second-quarter results and lowering its sales outlook for the year. The stock dropped almost to its 200-day moving average.
BJ's Wholesale Club and Urban Outfitters were the latest retailers to report. Shares of BJ's had rallied into earnings but fell below the 50-day moving average and undercut a base after July-quarter sales missed views. Urban Outfitters fell below the 200-day moving average after same-store sales missed estimates.
Peloton gapped up and cleared the 50-day and 200-day lines after its June-quarter loss narrowed more than analysts had expected.
In software, Snowflake fell on weak guidance and fell back below its downward-trending 50-day line.
Among China plays, Baidu also fell below the 50-day line after second-quarter sales disappointed, although earnings beat expectations. Chip-design technology provider Synopsys gave up earlier gains after a strong July-quarter performance and a higher sales outlook for the current quarter. Shares fell back to the 200-day line.
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