The MSCI World Equity Index declined 0.38%, while the STOXX 600 closed flat

Global equities dropped on Thursday on investor jitters around the U.S. Federal Reserve’s three-day annual symposium, as gold prices dropped amid a stronger U.S. dollar.

The symposium started on Thursday, with traders awaiting Fed Chair Jerome Powell’s speech on Friday for hints about the likelihood of a September U.S. rate cut.

Oil futures gained, bolstered by signs of strong U.S. demand and uncertainty over efforts to end the war in Ukraine.

The U.S. dollar added 0.43% against a range of other currencies.

The MSCI World Equity Index declined 0.38%.

Jitters over what’s going to transpire tomorrow at Jackson Hole are certainly weighing on risk appetite a little bit with chair Powell’s speech, said Adam Turnquist, chief technical strategist for LPL Financial.

On Wall Street, the S&P 500 shed 0.40% to 6,370.17 and the Nasdaq Composite dropped 0.34% to 21,100.31.

Traders had ramped up bets for a September cut following a surprisingly weak payrolls report at the start of this month, and were further encouraged after consumer price data showed limited upward pressure from tariffs.

But they lowered their expectations slightly following the release of minutes from the Fed’s July meeting. By Thursday, markets were pricing in a 70.4% probability of a September rate cut, compared to 83% on Wednesday, as per LSEG data.

The pan-European STOXX 600 closed flat, and major bourses were mixed.

The EU said it would strive to ensure lower U.S. tariffs apply to its car exports retroactively, as the EU and U.S. detailed commitments made in a deal reached last month.

Euro zone business activity accelerated in August, PMI data showed, with Germany registering its fastest growth since March and France’s downturn easing.

The euro was down 0.4% at $1.1604.