U.S. stocks ended lower on Aug. 19, with the blue-chip Dow reaching a record high early with help from home improvement retailer Home Depot and more economists saying they don’t expect Federal Reserve Chair Jerome Powell to signal any imminent rate cuts.
Home Depot missed quarterly results estimates but stuck to its full-year outlook. The retailer said it has not raised prices due to tariffs and has no plans to do so.
Discount giants Target and home improvement company Lowe’s are slated to report before the open on Aug. 20, and Walmart the next morning. Large retailer earnings can provide a window into how tariffs are affecting companies and consumer spending.
The Dow closed up 0.02%, or 10.45 points, to 44,922.27 after touching a fresh all-time high of 45,207.39; the broad S&P 500 slipped 0.59%, or 37.78 points, to 6,411.37; and the tech-laden Nasdaq fell 1.46%, or 314.822 points, to 21,314.952. The benchmark 10-year Treasury yield dipped to 4.306%.
Hower, the main event will be Powell‘s speech at the end of the week at the annual Jackson Hole Economic Symposium of global central bankers and finance chiefs. Investors will be looking for hints Powell may be done waiting to see tariff effects before cutting rates again.
The CME FedWatch tool that shows the likelihood that the Fed will change rates at each policy meeting based on market trading suggests a nearly 85% chance of the Fed easing rates in September. However, economists doubt Powell will give a clear sign he is willing to lower rates soon.
“While Powell is likely to signal greater openness to cutting rates in the near-term through his discussion of the labor market, he is unlikely to lock in a rate cut in September,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. “Our sense from Fed speakers so far is that there is not yet broad-based support for such an action, and Powell is likely to gain little by pushing the market further towards a September cut.”
Before Powell’s speech, investors will get a glimpse midweek of the dissents at the last Fed meeting. Fed governors Christopher Waller and Michelle Bowman voted against the central bank’s decision to keep rates unchanged between 4.25%-4.50% last month. It was the first time since 1993 that two governors dissented.
Investors mostly shrugged off an unexpected jump in housing starts in July. Year-over-year, starts grew 12.9%, the fastest growth since December 2023.
Crypto firm Tether hired former White House crypto policy executive Bo Hines as a strategic adviser to help steer its expansion in the United States.
Separately, Thailand said it would allow tourists to convert their crypto into Thai bhat to spend on their trip. Tourists must go through licensed digital-asset business operators and e-money service providers, according to a Finance Ministry statement. They are also limited to 500,000 baht per month.
Bitcoin was last down 2.58% at $113,283.80.
This story was updated with new information.
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.