**ASX Set to Slip as Global Investors Await Powell’s Commentary and Walmart’s Disappointing Results Weigh on Markets**
*Adapted from an article by Simon Johanson, the Australian Financial Review, with additional expert insights*
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### Introduction
The Australian sharemarket (ASX) is poised for a cautious open in response to fresh signals from US financial markets and growing anticipation of commentary from Federal Reserve Chair Jerome Powell. Global sentiment has been further impacted by a recent earnings miss from US retail giant Walmart, highlighting concerns about consumer strength and corporate outlooks amidst persistent inflation and interest rate uncertainties. This analysis examines the market setting for Australian investors, key drivers of international equity volatility, and expectations as global central bankers prepare to gather for the influential Jackson Hole Symposium.
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### Summary of Market Movements
On the eve of the latest trading session, Wall Street delivered a mixed performance after Walmart, regarded as a bellwether of American consumer sentiment, posted an earnings report that failed to meet analyst expectations.
– **The S&P 500 eked out a modest gain, closing up 0.1 percent.**
– **The Dow Jones Industrial Average slipped by 0.2 percent.**
– **The Nasdaq Composite recorded a more robust performance, increasing 0.3 percent.**
These results came ahead of the highly anticipated remarks of Federal Reserve Chair Jerome Powell, whose speech at Jackson Hole is expected to outline the direction of US monetary policy in coming quarters.
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### Walmart’s Earnings Disappoint
Walmart, the world’s largest retailer, significantly influences market trends given its broad exposure to US shoppers, cutting across all demographics. In its latest quarterly update, Walmart reported weaker-than-anticipated financial results, sparking concern among investors about potential cracks in US consumer resilience.
#### Key Points from Walmart’s Report:
– **Revenue growth failed to meet analyst forecasts.**
– **Same-store sales, typically a reliable indicator of underlying demand, grew at a slower-than-projected pace.**
– **Management pointed to tougher consumer spending conditions, especially among budget-conscious shoppers.**
– **Guidance for the remainder of the financial year was revised downward, citing inflationary headwinds and uncertain demand.**
Investors were quick to react, leading to a drop in Walmart’s share price. This weakness reverberated across other consumer and retail stocks, amplifying already fragile investor sentiment.
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### Spotlight on Jackson Hole: Policy Uncertainties Persist
After a period of significant monetary tightening, market participants are closely monitoring signals from the Federal Reserve to determine whether rate-easing might begin in the coming months. Powell’s upcoming speech in Wyoming is expected to address:
– **Current views on inflation trends and the risks of resurgent price pressures.**
– **The health of the US labor market, which continues to demonstrate mixed signals.**
– **Potential timelines for interest rate adjustments, especially as the Fed attempts to engineer a ‘soft landing’ for the US economy.**
– **The role
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