CNBC Daily Open: Stocks slide ahead of Powell's speech

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Wall Street drops ahead of Powell speech. Peloton soars 40%. Fed's Harker says 'we need to start moving rates down'.

Traders work on the floor of the New York Stock Exchange during morning trading on August 12, 2024 in New York City.This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribeduring an interview with CNBC at the Fed's Jackson Hole retreat.

Get the CNBC Daily Open report in your inbox every morning and keep up to date with the markets wherever you are. Whether traders are working from home or in the office, at 10 a.m. ET everything will come to a halt as Fed Chair Jerome Powell delivers one of the most anticipated economic speeches of the year." of Fed members advocating for a rate cut in September, markets are banking on a 100 basis point reduction for 2024. The expectation suggests at least one 50 basis point cut, given that there are only three rate-setting meetings left this year.

"I don't think he's going to pre-commit to a specific easing path," Brown told CNBC. "Instead, I think he's going to frame it as they will be data dependent and they will let the data guide them in terms of their decisions." "A lot of his speech will focus on the risks of being too aggressive with rate cuts versus being too late to cut rates — and I think his comments will really focus in on trying to find that middle ground, which helps to maintain or safeguard the economic expansion while ensuring inflation remains contained."given the current state of the economy.

 

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