U.S. stocks fell as solid factory data raised doubts about Fed rate cuts. All eyes are on Fed Chair Jerome Powell’s Jackson Hole speech. Foreign investors continue to buy U.S. assets, with $192 billion in net purchases in June and $326 billion in May. The U.S. economy remains attractive to global investors.

Traders look to Powell’s Jackson Hole speech for rate cut signals. Mixed U.S. economic data and strong manufacturing PMI complicate the dovish case. Global business activity remains strong, with positive reports from Australia, Japan, India, the euro zone, and Britain. Trade tensions persist as the US and EU finalize a new tariff deal.

Capital continues to flow into the U.S. due to strong growth prospects. Despite a 10% drop in the dollar this year, inflows remain robust. The disconnect between Fed rate cut expectations, U.S. growth outlook, and capital flows raises questions. Traders expect significant rate cuts, but the economy shows signs of resilience.

Investors await key economic data releases tomorrow, including Japan inflation, UK consumer confidence, Germany GDP, Canada retail sales, and Powell’s speech at Jackson Hole. Foreign demand for U.S. assets remains high, signaling confidence in the U.S. economy. Market movements will be influenced by upcoming data releases and Powell’s speech.

Read more at Yahoo Finance: Fed bets slip, Powell takes the stage