Focus shifts to Jackson Hole
In a day marked by stock market volatility, several notable companies experienced significant losses, while one company managed to buck the trend.
The Federal Open Market Committee (FOMC) members have projected a moderate interest rate cut for 2026, with the US federal funds rate expected to decline from a median of 3.9% in 2025 to 3.4% in 2026. This indicates a slightly less aggressive monetary policy than earlier projections, with the central tendency for 2026 ranging between 3.1% and 3.6%.
However, the retail sector has been hit hard by these economic fluctuations. Walmart, a major player in the retail industry, saw its stock plunge by 4.5%, making it the worst performer in the Dow Jones. This decline came after Walmart's earnings per share missed analysts' consensus estimates. The retail sector was already in poor shape due to a weak earnings forecast from rival Estée Lauder, further exacerbating the situation.
Tesla and Meta, two tech giants, also experienced losses, with their shares falling by 1.2%. In contrast, the outlook for Coty Inc., a beauty products company, was particularly bleak. The company's revenue decline exceeded the most pessimistic expectations, causing its shares to plummet by 21.6%, reaching their lowest level since November 2020.
Despite the overall negative market trend, Alphabet, the parent company of Google, was the only bright spot, gaining slightly against the market downturn.
Interestingly, Mr. Bernd Förtsch, the board and majority shareholder of the publisher Börsenmedien AG, has entered into direct and indirect positions in Tesla and Coty Inc.
This article contains material from dpa-AFX.
