The S&P 500 pulled back on Thursday as investors readied for a speech by Federal Reserve Chair Jerome Powell at the central bank's annual Jackson Hole conference.

The broad index slipped 0.89% to close at 5,570.64. The Dow Jones Industrial Average ended down 177.71 points, or 0.43%, at 40,712.78. The Nasdaq Composite shed 1.67% to close at 17,619.35 as technology stocks felt the brunt of Thursday's declines.

Thursday marks a retreat following a largely positive period that had been deemed a recovery rally following the global market rout on Aug. 5. All three indexes had traded higher at one point in the session, with the S&P 500 within striking distance of its all-time intraday high set in July before reversing course.

Stocks felt downward pressure from rising bond yields and struggling tech names on Thursday. Notably, the 10-year U.S. Treasury yield climbed nearly 9 basis points to 3.863%. The information technology sector led the S&P 500 lower with a slide of more than 2%, underscoring the weakness among this group.

"The market was as flat as a pancake through almost the entire morning," said George Ball, chairman of Sanders Morris. "You've got a very thinly traded market that is, today, looking ahead with some trepidation to Labor Day and to what happens after Labor Day."

Thursday's action comes as market participants turn attention to Powell's speech at the Jackson Hole Economic Symposium on Friday, hoping for further insight into rate policy. Traders are unanimous in expecting a decrease in borrowing costs next month, per the CME Group's FedWatch Tool, but are divided over whether the reduction will be a quarter or half a percentage point.

That will follow minutes from the Fed's July gathering released Wednesday. They indicated that most participants at the central bank's meeting said it would "likely" be appropriate to lower the fed funds rate from the current range of 5.25% to 5.5% at the September meeting — if data continues to come in as expected.

With Thursday's drop, the Nasdaq sat slightly below flat on the week. The Dow and S&P 500 were still higher by 0.1% and 0.3%, respectively.

In corporate news, software company Snowflake dropped 14.7% as rising costs hit its operating margins. Despite this, the company beat quarterly expectations and slightly raised its full-year product revenue forecast. Urban Outfitters slid 9.6% after disappointing second-quarter same-store sales growth.

Clarification: The story has been updated to reflect that the Fed is expected to lower rates from a current range of 5.25% to 5.5%.

Stocks finish lower

The three major indexes finished Thursday in the red.

The S&P 500 and Nasdaq Composite finished 0.9% and 1.7% down, respectively. The Dow shed 0.4%.

— Alex Harring

Powell set to deliver major policy speech Friday morning in Jackson Hole

Federal Reserve Chair Jerome Powell will deliver his annual keynote policy speech at 10 a.m. ET from the central bank's conclave in Jackson Hole, Wyoming.

Markets largely expect the central bank leader to signal a coming interest rate reduction in September as well as lay the plan ahead for monetary policy.

Lou Crandall, a former Fed official and now chief economist at Wrightson ICAP, expects Powell to be "directionally unambiguous, but specifics about how fast and exactly when will depend on the data between now and the meeting. Little doubt that they will start cutting in September."

— Jeff Cox

Technology leads market losses

Information technology was the S&P 500's most-lagging sector on Thursday, falling 1.8%. Intel led the sector's losses with a decline of 4.8%.

Consumer discretionary was the second-most underperforming sector with a loss of 1.5%. Tesla and Domino saw the biggest drops in the sector, selling off 4.5% and 2.5%, respectively.

— Hakyung Kim

Stocks remain lower nearing final trading hour

The three major indexes were tracking for notable gains as investors readied for the final hour of trading.

The Dow slid more than 200 points, or 0.5%, as of around 2:50 p.m. ET. The S&P 500 and Nasdaq Composite dropped 0.8% and 1.3%, respectively.

— Alex Harring

Powell is unlikely to signal a September cut larger than 25 basis points, says Wolfe Research

Don't expect Federal Reserve Chair Jerome Powell to signal anything larger than a 25-basis-point interest rate cut in remarks on Friday, according to Wolfe Research.

"With inflation coming down closer to the Fed's 2% target and employment weakening faster than outlined in the Fed's June Summary of Economic Projections, our sense is Powell will maintain his dovish tone and signal a cutting cycle starting at the September 18th meeting," chief investment strategist Chris Senyek wrote Thursday.

"[C]ontrary to what the futures market is pricing in for the remainder of 2024, we do not believe the Fed Chair will signal a cut larger than 25bps, especially given the FOMC's "data dependent" stance and 4 key economic data releases on the horizon," he added.

— Brian Evans

Peloton heads for best day ever

Peloton shares popped more than 33% during Thursday's session, putting the connected fitness company on pace for its best day on record.

The gains came after the company posted its first sales increase in nine quarters as it implements its turnaround plan. Peloton topped revenue estimates and posted a smaller-than-expected loss of 8 cents per share.

Earlier this year, the company announced a restructuring plan as it looks to bounce back from a post-pandemic slump. The company reached all-time highs in 2021 as lockdowns forced customers to work out from home.

The pandemic darling is down more than 97% from its all-time closing high of $167.42 in January 2021.

— Samantha Subin

Stocks making the biggest moves midday: Urban Outfitters, Peloton and more

These are the stocks moving the most in midday trading:

• Urban Outfitters — The stock sank 9% after the clothing retailer reported that second-quarter sales in locations open for at least a year fell 9.3% from a year ago.
• Peloton — Shares rallied 34% after the connected fitness company posted a rise in sales for the first time in nine quarters as it implements its turnaround plan.
• Advance Auto Parts — The automotive parts retailer fell 16% after reporting second-quarter earnings of 75 cents per share, while analysts polled by FactSet had anticipated earnings per share of 93 cents.
• Zoom Video — The telecommunications stock climbed 13% following a second-quarter earnings and revenue beat.

Read the full list of stocks moving here.

— Lisa Kailai Han

Moderna, Intel among major Nasdaq laggards

The Nasdaq Composite slumped around 1% during midday trading, led to the downside by shares of chipmakers and one major drugmaker.

Moderna and Intel were the biggest laggards in the concentrated Nasdaq-100, falling more than 4% each. Tesla slumped 3%, along with artificial intelligence stocks Advanced Micro Devices and Super Micro Computer. Nvidia, Qualcomm and On Semiconductor fell more than 1% each.

— Samantha Subin

More than 2 out of every 3 Dow stocks trade lower

Most Dow members traded lower in Thursday's session as the broader stock market struggled.

More than 2 out of every 3 of the 30 stocks in the blue-chip average headed for losses, as of shortly before noon ET. The index as a whole was down more than 170 points, or 0.4%.

Intel led the decline with a drop of more than 4%, followed by Amazon with a slide of more than 1.5%.

JPMorgan and Walmart were among the small cohort of members able to buck the downtrend, with both adding about 0.5%.

— Alex Harring

Dollar index rises Thursday

The U.S. dollar index gained 0.5% Thursday to 101.55.

Against the Mexican peso, the dollar strengthened around 1% to 19.4539. The dollar also rose 0.7% against the yen to 146.3.

The euro weakened 0.4% to $1.11 on slowing wage growth and softer-than-expected euro zone data.

— Hakyung Kim

Nike could notch historic winning streak

Nike could clinch its longest winning streak in the athletic retailer's history on Thursday.

If the stock ends Thursday in the green, Nike will record its 13th straight positive session. That would mark its longest ever, surpassing a 12-day rally seen in 2007.

Shares of Nike, which went public in 1980, hovered around flat in Thursday morning trading. Despite the recent advances, the stock is still down more than 22% in 2024.

— Alex Harring, Nick Wells

July home sales rise for first time in five months

Sales of previously owned homes snapped a four-month losing streak in July, rising 1.3% month over month to a seasonally adjusted, annualized rate of 3.95 million units, according to the National Association of Realtors.

"Despite the modest gain, home sales are still sluggish," said Lawrence Yun, NAR's chief economist, in a release. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."

— Diana Olick

Cybersecurity stocks hit all-time highs

Cybersecurity stocks are hitting all-time highs, with two exchange-traded funds, First Trust Nasdaq Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) doing so for the first time since February 2024 and November 2021, respectively. The ETFs have also both notched an eight-day win streak.

— Sarah Min, Nick Wells

Flash PMI readings solid on services, weak on manufacturing

The U.S. services sector fared better than expected in August, but the manufacturing side could not say the same, according to purchase manager surveys released Thursday.

The S&P Global flash services PMI index came in at 55.2, up slightly from July and better than the estimate of 54 from Dow Jones consensus.

On manufacturing, the reading of 47.8 represented a 14-month low, down nearly 3 points from July and worse than the 49.3 forecast.

The indexes gauge the percentage of companies reporting expansion, so anything below 50 indicates contraction overall.

— Jeff Cox

Stocks open higher

Stocks kicked off Thursday's session higher.

The S&P 500 and Nasdaq Composite climbed 0.4% and 0.5%, respectively. The Dow added 0.2%.

— Alex Harring

Stocks track for winning week

With more than half the trading week in the rearview mirror, the three major indexes are tracking for gains.

The S&P 500 and Nasdaq Composite, which have both seen nine positive sessions of the last 10, are up more than 1% each on the week. The Dow has added about 0.6% week to date.

— Alex Harring

Fed's Schmid says there's 'more work to do' on inflation

Kansas City Federal Reserve President Jeffrey Schmid indicated Thursday that the time is getting closer for interest rate cuts but he is still concerned about getting inflation back down to the central bank's 2% goal.

"I still believe quite strongly that we really need to turn this inflation number towards 2[%]. It has to be sustainable. Having the labor market cool some is helping that, but there's still more work to do," Schmid told CNBC's Steve Liesman in a live interview from the Fed's annual retreat in Jackson Hole, Wyoming.

"I really do believe you've got to start looking a little bit harder relative to where the 3.5% [unemployment rate] number was and where it is today in the low 4s," he added.

Schmid called current Fed interest rates "restrictive, but they're not overly restrictive."

— Jeff Cox

Jobless claims rose more than expected last week

Initial filings for unemployment benefits were a bit higher than expected last week, while the longer-term trend continued to rise.

Jobless claims totaled 232,000 for the week ending Aug. 17, up 4,000 from the previous period and slightly higher than the 230,000 Dow Jones consensus estimate, the Labor Department reported Thursday.

Continuing claims, which run a week behind, nudged up to 1.863 million, an increase of 4,000 and the highest level since Nov. 27, 2021.

— Jeff Cox

Stocks making the biggest moves premarket

Check out some of the companies making moves in premarket trading:

• Crocs — The footwear stock ticked up more than 1% after an upgrade to buy from hold at Williams Trading. The investment firm said Crocs' move to sign actress Sydney Sweeney as a spokesperson for its Heydude brand could help reverse negative sales trends.
• Agilent Technologies — Shares of the laboratory supply company advanced more than 2% after fiscal third-quarter results surpassed Wall Street estimates on the top and bottom lines. The firm reported earnings of $1.32 per share, excluding items, on revenue of $1.58 billion. Analysts polled by LSEG forecast $1.26 in earnings per share and $1.56 billion in revenue.
• Nordson — Shares climbed more than 3% after the adhesives company reported better-than-expected fiscal third-quarter results. Nordson notched earnings of $2.41 per share, excluding items, on revenue of $661.6 million. Analysts polled by FactSet expected $2.33 in earnings per share and $656.5 million in revenue.

Read the full list here.

— Brian Evans

Advance Auto Parts falls after big earnings miss and guidance cut

Shares of Advance Auto Parts fell more than 11% in the premarket after the car parts provider reported second-quarter earnings that missed analysts' expectations.

The company earned 75 cents per share. Analysts polled by StreetAccount expected a profit of 93 cents per share. It also cut its earnings per share guidance to a range of $2 to $2.50. It previously forecast earnings between $3.75 per share and $4.25 per share.

The stock had risen earlier after a Bloomberg report said Carlyle agreed to buy Advance Auto Parts' Worldpac business for $1.5 billion.

— Fred Imbert

Deutsche Bank rises after announcing settlement for bulk of Postbank lawsuit claims

U.S. shares of Deutsche Bank advanced more than 2% after announcing a settlement with many plaintiffs in a long-running case tied to its acquisition of Postbank.

The German bank said it had come to agreements with more than 80 plaintiffs, which equates to almost 60%, for a settlement of 31 euros, or $34.53, per share. It is tied to the lawsuit claiming Deutsche Bank underpaid when buying Postbank more than a decade ago.

Shares are up more than 15% in 2024.

— Alex Harring, Jenni Reid

European markets open slightly higher

European stocks opened marginally higher Thursday as investors look for indications from the Federal Reserve on the future path of interest rates.

The pan-European Stoxx 600 index was up 0.10% in early trade, with the majority of sectors and major bourses in the green. Travel and leisure stocks were up 0.44%, while mining stocks fell 0.55%.

It comes after the pan-European benchmark ended the day higher on Wednesday, with the majority of sectors in positive territory as markets rebounded after snapping a winning streak on Tuesday.

— Karen Gilchrist

Urban Outfitters sales remain very problematic

Urban Outfitters easily beat earnings expectations — $1.24 vs. $1.00 estimate — while revenues were about in line with what analysts projected. But shares are falling after the apparel retailer's same-store sales figures disappointed.

The company's namesake brand continues to be a major problem. Sales of stores open for at least a year for the Urban Outfitters brand fell 9.3% in the latest quarter — more than the 8.3% decline Wall Street expected. That is the ninth consecutive quarter of same-store sales declines for the brand.

The 9% decline during the most-recent quarter also compounds the significant weakness from the past two years. In the year-ago quarter, the Urban Outfitters brand saw a 14% drop in same-store sales, and that was on top of a 9% drop from the quarter two years ago.

— Robert Hum

Four of 11 sectors in the S&P 500 scored 52-week highs on Wednesday

The health care, utilities, real estate and consumer staples sectors inside the S&P 500 all touched 52-week highs on Wednesday, according to FactSet data. None closed more than 0.74% below the 52-week high (utilities), and real estate stocks closed only 0.08% below the 52-week high.

Energy stocks in the S&P 500 have gone the longest time since reaching a 52-week high, a mark last touched on April 5, followed by materials stocks on April 9.

The largest percentage loss since a 52-week high also came in energy stocks, down 9.7%, followed by communication services at 5.6% (since July 5) and information technology, down 5% (July 10).

Although materials stocks last traded at a 52-week high in April, the group is only down 1.4% since then.

— Scott Schnipper

Snowflake, Zoom, Urban Outfitters among stocks moving after market close

Check out the companies making headlines in after-hours trading:

• Snowflake — Shares tumbled nearly 7% even after the software company beat quarterly expectations and slightly raised its full-year product revenue guidance. Snowflake reported fiscal second-quarter adjusted earnings of 18 cents per share, higher than the 16 cents per share expected by analysts surveyed by LSEG. Its revenue was $869 million for the period, higher than the $851 million expected by analysts.
• Urban Outfitters — The retailer fell roughly 4% after same-store sales disappointed analysts. Stores for the Urban Outfitters brand that were open for at least a year fell 9.3% in the second quarter, compared to analysts' expectations of an 8.3% decline. The company's earnings and revenue beat expectations, meanwhile.
• Zoom Video — Zoom edged 2.7% higher after reporting a strong second quarter and topping guidance estimates. The company posted adjusted earnings of $1.39 per share on $1.16 billion in revenue, higher than an estimate of $1.21 in earnings per share. Zoom also announced that its Chief Financial Officer Kelly Steckelberg is leaving the company.

For more, read here.

— Pia Singh

Stock futures open just slightly higher on Wednesday

Futures tied to the Dow Jones Industrial Average added 2 points, just above flat, shortly after 6 p.m. ET. S&P 500 futures and futures tied to the Nasdaq-100 were each trading less than 0.1% higher.

— Pia Singh