US OPEN: Stocks tumble down ahead of the Jackson Hole

The American market remains under pressure from high valuations, disappointing results, and FED policy. American stock indices are sliding down for another consecutive day. The US500 is losing about 0.5% at the opening.

The largest employer in the USA, Walmart (WMT.US), has released its results for the second quarter of 2025. The retailer has once again disappointed investors in terms of EPS, missing expectations. Despite beating expectations in most other categories, the company is losing over 3% before the market opens.

• EPS: 0.68 compared to the expected 0.73
• Revenue: 177.4 billion compared to the expected 175.9 billion
• Sales: growth of 4.8 compared to the expected 4.21%
• Gross margin: increased to 22.8% compared to the expected 24.8%
• The forecasted sales growth for the end of the year has been raised from the range of 3-4% to 3.75%-4.75%.

Morgan Stanley raises the rating for Hewlett Packard (HPE.US). The new target price according to the bank's analysts is $28, which implies a 33% increase from current levels. The company is up 2.8% in pre-market trading.

Boeing (BA.US) is getting closer to securing a deal with China for the delivery of up to 500 new aircraft. In light of this information, the company's price is up about 2% in pre-market trading.

Macroeconomic data:

• The number of unemployment benefit claims in the USA increased by 235 thousand compared to expectations.
• The PMI reading for Services indicates 55,4 compared to the expected 54.2.
• The PMI reading for Manufacturing indicates 53,3 compared to the expected 49.5.

US500 (H4)

On the H4 chart, the level of 6366, which was the lower boundary of the ascending channel, has been defended. The support on the trend line is further reinforced by the peaks and troughs from the beginning of the week. Just below the trend line, the EMA200 average is very close, and its breach could lead to further price declines. Concerns about the durability of the price defense may also arise from the fact that it is currently below its 25, 50, and 100-period averages. The RSI indicators suggest that the index is already oversold.

Uncertainty surrounds the FED

The FOMC minutes clearly highlighted the threat of inflation returning, and more importantly, that the risk of inflation is greater than the threats to the labor market. Very high asset valuation indicators were also mentioned. This comment may raise additional concerns in the perspective of the Jackson Hole symposium this Friday. It is worth noting that as of today, the market is pricing an 80% probability of a rate cut in September.

The atmosphere surrounding the FED in recent weeks is not being alleviated by the US president. Donald Trump demands the resignation of Lisa Cook, accusing her of forgery. In the event of Governor Cook's dismissal/resignation, the president would move closer to gaining a majority in the FOMC. President Donald Trump is currently one of the most vehement critics of the policy of maintaining interest rates at the current level.