US stocks closed lower as investors braced for Federal Reserve (Fed) Chairman Jerome Powell's speech at the Jackson Hole conference today.
All eyes are on the annual Jackson Hole symposium, where Powell is scheduled to speak at 10pm Malaysia time (MYT) to provide guidance on the direction of policy rates.
Traders will be watching his speech for a signal whether the Fed will cut interest rates in September following recent weakness in the jobs market.
According to LSEG data, expectations for a 25 basis point interest rate cut in September have fallen from 99.9% to 79% last week.
The Dow Jones Industrial Average fell 0.34% to 152.81 points, the S&P 500 fell 0.40% to 25.61 points, while the tech-focused Nasdaq fell 0.34% to 72.54 points.
In other news, the PMI report also showed business activity rose in August, while US existing home sales for July unexpectedly rose.
The mixed data also reflected complex challenges for the Federal Reserve ahead of its policy meeting next month.
Meanwhile, retail stocks fell 4.5% with attention focused on earnings reports from retailers such as Target Corporation and Home Depot Inc this week as investors assess the impact of US tariffs on consumer spending.
Volume on US exchanges recorded $12.28 billion compared to an average of $17.08 billion over the full 20 trading days.
