Wall Street slipped again Thursday as the selling in big tech deepened, dragging the Nasdaq lower for a sixth straight day, its longest skid since 2022. The S&P 500 notched its fifth decline in six sessions, while breadth remained negative with staples, discretionary, REITs and tech lagging. Energy and materials eked out gains, helped by a modest oil rebound.

Bond markets stayed on edge. Yields on the 2-year and 10-year rose 4 basis points as traders trimmed the odds of a September Fed cut after hawkish remarks from officials and still-sticky inflation data. Futures markets now price about a 70% chance of a 25-basis-point cut, down from 90% a week ago. The dollar pushed higher, gold faded, and crypto remained under pressure.

The backdrop for Powell’s Friday keynote in Jackson Hole is delicately poised. Stronger PMI survey readings this week suggested momentum in both services and manufacturing, but firms also flagged rising price pressures. At the same time, jobless claims ticked up to 235,000, and continuing claims reached 1.97 million, the highest in years, signaling displaced workers are struggling to find new jobs. That tension, firm activity but a softening labor market, is precisely the balancing act Powell will be forced to address.

The “Magnificent 7” carried markets higher all year, but for the second straight session they fell more than 1%, fueling concerns that the concentration trade may finally be fraying. The Nasdaq is now down more than 2% for the week, and with sector breadth weak, investors are eyeing whether rotation into cyclicals and small caps has real legs or is just noise.

Retailers remain in the spotlight. Walmart raised its sales outlook despite softer earnings, underscoring a resilient consumer base even as inflation pinches. Target, Lowe’s, and Home Depot struck similar notes earlier this week: consumers aren’t charging ahead, but they’re holding up. Tariffs, insurance claims, and legal charges are complicating margins, but household spending still trends positive. That resilience is helping offset a darker consumer confidence picture, with sentiment surveys slipping back toward 2022-style lows.

Jackson Hole dominates the near-term, but geopolitics are setting the stage for autumn. Reports suggest the U.S. and EU reached a wide-ranging deal on tariffs, energy purchases, and chip cooperation. The U.S. will still impose 15% tariffs on most EU imports but phase down auto duties if Brussels passes reciprocal legislation, while the EU pledged big-ticket U.S. LNG and AI chip purchases. Markets have yet to fully digest the deal, but the alignment on strategic sectors signals a deepening of transatlantic economic ties.

Elsewhere, Russia-Ukraine peace talks hover in the background, with Trump pushing for a framework deal and allies urging caution. Meanwhile, famine conditions in Gaza and a faltering Chinese economy complicate the global picture. Beijing’s latest PMI and retail data disappointed, reinforcing concerns that tariffs and domestic weakness are beginning to bite harder.

The domestic political front is as turbulent as the markets. Trump moved to purge a senior Russia analyst at the CIA, raising concerns about politicization of intelligence just as negotiations with Putin advance. On the economic side, the Fed minutes showed officials still tilting hawkish in July, though that was before a weak jobs print shifted the balance. Powell’s message today will need to bridge those competing narratives: inflation remains above target, but the labor market is clearly softening.

Meanwhile, the 2024 electoral map continues to reshape itself. New polling shows Hispanic voters in Texas beginning to cool on Trump, a reminder that while his grip on national politics is strong, key constituencies may prove more fluid in the months ahead.

We’re rolling out something new to end the week on a lighter note. Each Friday, we’ll drop a single chart and put the question back to you: Are you a buyer, seller, or staying away? No deep dive, no overthinking, just a quick pulse check of market sentiment. Cast your vote below, and we’ll disclose the underlying security in Monday’s Briefing!

Markets are running out of patience. With tech wobbling, breadth narrowing, and bond yields creeping higher, the Powell speech today lands at a pivotal moment. A dovish lean could reignite the risk-on trade into September, but a cautious or hawkish tilt might extend the pullback. The data calendar remains thin until payrolls and inflation hit in early September, leaving Jackson Hole as the market’s compass for the next two weeks.