Dow takes a break as investors wait for the Fed to save the day

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While news of trade wars, recessions and economic stimulus are currently down, investors are now waiting for Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday to see what he's saying. can help revive the market.

Inventories traded modestly lower. the Dow (UNDUE) was down 80 points, or 0.3%. the S & P 500 (SPX) and Nasdaq Composite (COMP) are both down 0.5%.

Investors will closely follow Powell's speech Friday morning looking for signs of falling interest rates and his assessment of the US economy.

Expectations for a rate cut in September are 100%, with a 90% probability of a quarter percentage point cut, according to the FedWatch CME tool. Although these high expectations suggest another rate cut already built into the price, stocks could come together if Powell seems to falter on Friday.

President Donald Trump tweeted on Monday that the Fed should reduce rates by at least a percentage point.

Before Powell comes on the scene, Fed Vice President Randal Quarles will deliver a speech after the close of the market. The minutes of the July Fed meeting, where the central bank lowered rates by a quarter of a percentage point for the first time since 2008, was released on Wednesday.

With all this waiting behind the scenes, the demand for safer assets will likely remain high.

Elsewhere, China has announced new measures to boost its economy. Vice Governor of the People's Bank of China, Liu Guoquiang, said that it was possible to lower rates. Beijing's economic health is crucial for global growth.

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