Wall Street Set to Drop as Investors Brace for Fed Insights and Economic Data

Wall Street's main indexes are poised for a lower opening amid anticipation for fresh economic data and a key speech by Federal Reserve Chair Jerome Powell. Concerns about AI spending and prospective interest rate changes are influencing investor sentiment, while retail trends and crypto drops add to market volatility.

Wall Street is gearing up for a downturn as investors exercise caution ahead of new economic reports and a pivotal Federal Reserve update. The anticipated remarks from Chair Jerome Powell could provide crucial insights into potential monetary policy shifts, influencing market dynamics in the coming weeks.

Despite recent modest gains in the S&P 500 and Dow, the Nasdaq's significant decline underscores persistent concerns about expenditures in the artificial intelligence sector. The upcoming manufacturing surveys are expected to shed light on the U.S. economy's health, a vital factor for market stability.

Investors are also closely monitoring the Personal Consumption Expenditures Index report, while geopolitical factors such as Japan's potential rate hikes and domestic issues like Cyber Monday sales influence the economic landscape. Additionally, crypto stocks suffer as Bitcoin extends its substantial losses.

(With inputs from agencies.)