Overview

• The Dow fell 0.77% (about 349 points) to 45,282, the S&P 500 lost 0.43% to 6,439, and the Nasdaq eased 0.22% to 21,449.
• Odds of a September Federal Reserve rate cut climbed to roughly 85% on CME FedWatch after Jerome Powell’s Jackson Hole remarks.
• Nvidia rose about 1% ahead of Wednesday’s report, and traders are also bracing for Friday’s July PCE inflation release, the Fed’s preferred gauge.
• Market breadth weakened with 27 of 30 Dow components lower, led by declines in Merck, Amgen and Coca-Cola, while energy and communication services outperformed within the S&P 500.
• Cross-asset moves included a 10-year Treasury yield near 4.27%, a stronger dollar, WTI crude up to about $64.80, and declines in Bitcoin and crypto-linked stocks.