US Stocks Slide as Fed Rate-Cut Hopes Dim Ahead of Powell Speech

US equities retreated Thursday amid disappointing Walmart earnings and hotter-than-expected jobless claims, shifting focus to the Federal Reserve's Jackson Hole symposium. The Dow Jones Industrial Average fell 0.3%, while the S&P 500 dropped 0.4% and the Nasdaq Composite declined 0.3%.

Tech stocks remain under pressure despite Wednesday's partial recovery, with short sellers capitalizing on AI-related market anxieties to the tune of $5 billion in profits. The sector's volatility continues to weigh on broader market sentiment.

Recent Fed minutes revealed policymakers' growing preoccupation with persistent inflation rather than labor market weakness, dampening expectations for near-term rate cuts. This hawkish tilt coincides with rising jobless claims, which reached 235,000 for the week ending August 15 - exceeding forecasts of 225,000.

Counterbalancing these concerns, August manufacturing activity climbed to a three-year high. S&P Global's composite PMI ROSE to 55.4 from July's 55.1, suggesting underlying economic resilience despite financial market jitters.