Daily summary: Dollar gains ahead of Jackson Hole and on strong PMI data 💲📣

U.S. indices attempted to trim losses toward the end of the session, but selling pressure in American equities remains. Currently, the US500 is down 0.42%, the US100 is lower by 0.51%, while the US2000 is little changed.

The USD is one of the strongest G10 currencies today, alongside NOK and NZD, while the JPY is the clear underperformer. Dollar strength stems from hawkish remarks by Fed’s Hammack and exceptionally strong PMI figures. As a result, market expectations for a September Fed rate cut dropped to 73.5%.

On the flip side, jobless claims and the Philly Fed index came in weaker than forecast, but the market reaction was quickly overshadowed by the earlier PMI release.

Hammack delivered decidedly hawkish comments, dismissing the likelihood of a September cut. He stressed that inflation remains too high, the labor market is balanced, and the Fed should focus on curbing price pressures. At this stage, he sees no case for resuming monetary easing.

Separately, the Department of Justice called on Fed Chair Jerome Powell to dismiss Governor Lisa Cook over allegations tied to potential mortgage fraud involving real estate.

On the corporate side, Walmart posted solid Q2 2025 results, but growth momentum disappointed relative to lofty expectations, and valuation concerns weighed heavily. Shares extended losses to more than 4%.

U.S. existing home sales for July came in at 4.01 million, above expectations (3.92M) and the prior 3.93M, marking a 2% increase versus forecasts of a small decline.

In Europe, preliminary consumer sentiment data for July in the Eurozone dropped to -15.5, worse than the expected -14.7 and the prior -14.7.

Natural Gas (NATGAS) rose nearly 6% after contract rollover, with upside momentum supported by EIA data showing a smaller-than-expected inventory build.

Meanwhile, cryptocurrencies extended losses: Bitcoin fell 1.60% to $112,440, Ethereum slid 2.20% to $4,240, and the combined market cap of altcoins dropped 1.70% to $1.02 trillion.