Stocks retreated on Wall Street as investors turned cautious ahead of two major events: Walmart’s earnings report and the opening of the influential Jackson Hole Economic Symposium. Both the Dow Jones Industrial Average and the S&P 500 edged lower, snapping a recent run of gains as traders weighed fresh economic signals and anticipated guidance from central bankers.

The trading session saw all three major indexes—Dow, S&P 500, and Nasdaq—decline modestly. This move comes as August’s market volatility persists, with investors continually recalibrating their expectations in response to a changing economic landscape and shifting narratives about the Federal Reserve’s policy direction.

A notable focus was on Walmart, the world’s largest retailer, which is considered a bellwether for both consumer health and the broader U.S. economy. Investors were eager to assess whether American shoppers are maintaining spending momentum amid lingering concerns about inflation and the potential for higher interest rates. Walmart’s quarterly earnings not only reveal the state of household budgets but also provide critical clues about the resilience of retail spending, which is a pillar of economic growth.

However, perhaps the most anticipated event of the day—and the week—is the annual Jackson Hole Economic Symposium. Hosted by the Federal Reserve Bank of Kansas City, the symposium draws top central bankers, economists, policymakers, and financial market leaders from around the globe. This year’s theme, “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy,” is especially pertinent as markets grapple with questions about wage growth, labor shortages, and long-term productivity trends.

Federal Reserve Chair Jerome Powell is scheduled to make what may be his final major address as Fed chief, adding a layer of significance to his remarks. Powell’s speech is expected to offer crucial insights into the Fed’s thinking ahead of its September policy meeting. While markets have been eagerly anticipating signals about potential interest rate cuts or holds, Powell is likely to maintain a cautious stance, highlighting the complexities of balancing inflation risks against economic growth.

The backdrop for the symposium is especially tense this year. President Trump has been vocal in criticizing Powell, publicly demanding interest rate cuts and suggesting a need for even more accommodative policy, despite generally solid economic data. Investors are acutely aware of the political pressure facing the Fed, as well as the incoming economic data, which have shown mixed signals—robust consumer activity in some sectors, but signs of cooling job growth and some inflation measures hitting their highest levels in three years.

Market participants are on the lookout for any hint of a policy pivot in Powell’s speech—not just for the impact on U.S. markets, but as guidance for global central bankers. The annual gathering will also feature appearances by other key decision-makers, including the European Central Bank’s Christine Lagarde, Bank of Japan’s Kazuo Ueda, and Bank of England’s Andrew Bailey, whose commentary will be closely parsed for signs of coordinated or divergent approaches to monetary policy.

The Jackson Hole Symposium has a reputation for being the stage where major policy shifts are first discussed or hinted at. Investors recall past years when subtle changes in speech tone or carefully worded remarks set the trajectory for rate hikes or cuts that reshaped global market conditions. This year, the stakes feel even higher as central banks face not only the challenge of managing inflation, but also the pressures of political scrutiny and an evolving post-pandemic economy.

As the day closed, the mood across Wall Street was one of cautious anticipation. Volumes were thinner, and trading was subdued as most investors appeared satisfied to wait for more clarity from Thursday evening’s corporate results and Friday morning’s policy speeches. The market’s next move will heavily depend on whether policymakers at Jackson Hole project confidence in a soft economic landing, remain vigilant on inflation risks, or signal a readiness for further tightening if necessary.

For investors, the key takeaway is that the coming days could bring fresh volatility as markets digest not only hard economic data but also the nuanced guidance that often emerges from central banking symposia. With uncertainty running high, traders are bracing for swift reactions across stocks, bonds, and currencies as the global economic narrative continues to evolve.