Wall Street Breakfast Markets wait on Powell's next words
Aug 22, 2025
As all eyes turn to Jackson Hole, uncertainty looms over the markets with conflicting economic signals. Meanwhile, tech titans Google and Meta strike a landmark $10 billion cloud deal. Cracker Barrel finds itself in hot water after a controversial logo change, dragging down its stock. In addition, discussions about Elon Musk and Mark Zuckerberg's potential financing of an OpenAI takeover and Nvidia's halt on a China-focused AI chip add further intrigue to the financial landscape.
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Markets Hold Breath For Powell
- Markets are nervous ahead of Jerome Powell's Jackson Hole speech, with many pausing new investments until they hear his remarks.
- Elevated valuations and expectations for a September rate cut make investors sensitive to anything short of a hint toward easing.
Data Muddies Rate-Cut Expectations
- Soft economic data and stronger PMI readings suggest inflation risks and possible cyclical growth, complicating rate-cut bets.
- The result: "higher for longer" rates that reduce the chance of near-term easing and keep financial conditions tighter.
Don't Add Risk Before Powell Speaks
- Avoid deploying significant new capital just before Powell's remarks due to heightened risk and light August volumes.
- Consider trimming positions if Powell offers anything short of a clear signal toward September easing.