by Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended lower on Thursday, led by a decline in technology stocks, as central bankers gathered in Jackson Hole, Wyoming, for a symposium at which U.S. Federal Reserve Chairman Jerome Powell is scheduled to speak.

The Dow Jones index fell 0.43%, or 177.71 points, to 40,712.78 points.

The broader S&P 500 lost 50.21 points, or 0.89%, to 5,570.64.

The Nasdaq Composite fell by 299.63 points (1.67%) to 17,619.35 points.

While US Treasury yields rose after data eased recession fears that had emerged in markets over the summer, big technology stocks – including Wall Street’s “Magnificent Seven” – fell, weighing mainly on the Nasdaq.

Among the major sectors of the S&P 500, technology posted the biggest decline. Conversely, real estate posted the biggest gain.

On the stock side, it should be noted that Zoom Video Communications jumped 13.0% after raising its annual revenue forecast.

“There doesn’t seem to be a real catalyst for the decline” in the markets, said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.

“Maybe people are trying to adjust their positions ahead of Nvidia’s (earnings) next week, or avoid any risk ahead of Powell’s speech (on Friday),” he added.

Investors will be watching the Fed chairman’s comments in Jackson Hole for clues about the timing and extent of monetary easing the U.S. central bank will implement by year-end.

“We expect Powell to assure markets that (a September rate cut) is going to happen,” Ladner said. “He should be cautious about questions about the size of the cut – 25 or 50 basis points – but will probably leave the market thinking 25.”

Data showing a rise in weekly jobless claims, after the U.S. Labor Department sharply revised down its year-over-year job creation numbers in March, appear to confirm that the labor market is less robust than previously thought.

This strengthens the hypothesis that the Fed will proceed in September with a rate cut of 25 basis points.

Several U.S. central bank officials speaking Thursday suggested that an easing of the Fed’s ultra-tight monetary policy was imminent.

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( Jean Terzian)

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