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Stock Market: Dow drops as Trump eyes more stakes in companies

Stocks edged lower on Monday, dimming some of the optimism from Friday's Jackson Hole market rally.

Federal Reserve Chair Jerome Powell's speech in the Wyoming town raised hopes for interest rate cuts and drove stocks higher on Friday. Powell said "the balance of risks appears to be shifting" as a way to suggest that a weaker job market could rein in inflation.

The probability that the Fed will cut rates next month, as implied by futures markets, stood at about 85% Monday, up from 73% before Powell’s speech, according to the CME FedWatch tool.

Still, rate-cut hopes could be thwarted if economic data doesn’t play along. Friday will bring a report on personal-consumption expenditures for July, the Fed’s preferred inflation metric.

In other economic news, Kevin Hassett, President Trump’s National Economic Council director, said Monday the U.S. could take more stakes in companies similar to the equity investment in Intel. Trump expanded on those comments later Monday.

This week's big event is Nvidia's earnings, expected Wednesday. The $4 trillion chip maker is the the market's premier artificial-intelligence bellwether and investors have begun to worry that the AI spending boom could slow. The Nasdaq composite index declined 0.6% last week, even as Friday’s Fed-led market rebound propelled the S&P 500 higher for the week.



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