Investors remained on edge as Wall Street closed lower ahead of Federal Reserve (Fed) Chair Jerome Powell’s anticipated remarks at the Jackson Hole symposium.
Market sentiment shifted notably, with the likelihood of a September rate cut falling to 79%, down from nearly 100% just a week prior. Powell faces a challenging task: striking the right balance between offering dovish reassurance and acknowledging persistent inflation.
The Fed is navigating a complex environment marked by softening labour market data, stubborn price pressures, and mounting political scrutiny from President Trump.
Meanwhile, the tech sector continued to show weakness despite a slowdown in the recent selloff. Major players like Nvidia, Meta, Amazon, and AMD extended their losses, as investors grew increasingly cautious about elevated valuations and the prospect of tighter regulatory oversight.
Stronger yields added further weight to equities, intensifying the already cautious market mood.
FTSE 100 trades in record highs
The FTSE 100 has made yet another record high at 9,315 on Thursday’s with further upside expected on Friday morning. The next potential upside target is a 161.8% Fibonacci extension at 9,374.
Potential slips may find support around Thursday’s 9,256 low and at the 15 August 9,228 high.
