U.S. stocks snapped a recent winning streak on Thursday, with all major benchmarks closing lower after the Federal Reserve’s latest meeting minutes signaled a more cautious outlook on future rate cuts. Investors digested mixed economic data and rising Treasury yields, while commodity markets saw muted moves and the dollar held steady.
Market Overview
Wall Street retreated after the release of July’s Fed minutes, which revealed policymakers remain concerned about lingering inflation and are not yet ready to commit to further easing. The S&P 500 shed 0.8% to close at 4,670, while the Nasdaq Composite dropped 1.1% to 15,420. The Dow Jones Industrial Average slipped 0.6% to 37,850.
Bond yields ticked higher as traders recalibrated expectations for monetary policy. The yield on the 10-year U.S. Treasury climbed 6 basis points to 4.35%, its highest level in nearly two weeks, reflecting renewed uncertainty on the timing of rate cuts.
In commodities, Brent crude oil hovered near $85 per barrel, little changed on the day as traders weighed global demand concerns against OPEC’s ongoing production curbs. Gold edged down 0.3% to $1,970 an ounce, as rising yields and a firmer dollar dampened safe-haven demand.
The U.S. Dollar Index (DXY) advanced modestly to 104.8, its best level since early July. The euro slipped below $1.08, under pressure from softer eurozone economic data and the dollar’s broad-based strength.
Key Movers
Technology stocks led the day’s declines, with chipmakers underperforming following cautious guidance from industry leaders. Shares of Nvidia (NVDA) fell 2.4%, while Advanced Micro Devices (AMD) lost 1.8%, as investors reacted to signs of slowing demand in the data center segment.
Retailers also struggled after a mixed set of earnings. Target (TGT) dropped 3.2% following a tepid revenue outlook, while Walmart (WMT) eked out a 0.6% gain after beating profit expectations and raising its full-year guidance.
On the sector front, consumer discretionary and information technology posted the steepest losses, while energy shares managed to hold steady thanks to resilient oil prices.
European equities followed Wall Street’s lead, with the Stoxx Europe 600 declining 0.7%. Investors in the region continue to monitor currency swings and sector performance closely—topics we explore in depth in our guide to building a diversified ETF portfolio in Europe. For those tracking sector allocation or considering rebalancing, our beginner’s guide to portfolio rebalancing in Europe offers practical tips tailored to the current environment.
What to Watch
Looking ahead, investors will focus on Friday’s preliminary U.S. PMI data for fresh signals on manufacturing and service sector momentum. Next week brings revised Q2 GDP figures and a packed calendar of central bank speakers, including a closely watched appearance by Fed Chair Powell at the Jackson Hole Symposium.
In Europe, attention turns to consumer confidence data and the latest flash PMIs, as currency volatility remains top of mind for ETF investors. If you’re navigating cross-border risks, our analysis of the real impact of currency risk for European ETF investors offers timely perspective.
With summer volatility picking up and central banks in focus, investors are reassessing portfolio allocations and risk. For a broader look at constructing resilient strategies, revisit our Ultimate Guide to Building a Diversified ETF Portfolio in Europe (2026 Edition).
Stay tuned for tomorrow’s data releases—markets are watching every signal as the path to year-end remains anything but certain.