US stocks saw a modest increase on Wednesday, rebounding after the end of their longest winning streak this year. The market looked to the release of the Federal Reserve minutes and upcoming jobs data, which are expected to influence speculations on interest rate cuts. The S&P 500 and the Nasdaq Composite registered a gain of about 0.3%, while the Dow Jones Industrial Average hovered just above the flat line.

Investors are closely monitoring the labor market as it plays a crucial role in the Federal Reserve's policy decisions. With inflation appearing to subside, focus has shifted to employment data that could potentially support interest rate cuts. All eyes are now on Federal Reserve Chairman Jerome Powell's appearance at the Jackson Hole symposium on Friday, where his comments will be scrutinized for any indications of a potential 0.5% rate reduction in September.

Earnings reports from major retailers Target and Macy's shed light on the state of the retail sector and consumer spending. Target shares experienced a surge after the company's earnings surpassed Wall Street's expectations. However, Macy's shares slumped after the retailer reported a decline in sales.

In corporate news, Walmart confirmed the sale of its stake in Chinese e-commerce giant JD.com, generating approximately $3.6 billion in proceeds. This move triggered a decline in JD.com's shares in Hong Kong and impacted other Chinese tech stocks, while Walmart's US-listed stock plummeted by 7% during early trading.

Amidst the overall market activity, smaller AI company BigBear.ai witnessed its shares jump by nearly 40% after securing a portion of a $2.4 billion defense contract with the US government. This success highlights the growing interest and rally in artificial intelligence stocks.

Ford made headlines as the automaker canceled the release of its upcoming three-row electric SUV and postponed the opening of a new EV plant and full-size EV pickup. The company opted to prioritize smaller and more affordable electric vehicles, utilizing hybrid technology for its next-generation three-row SUVs. These strategic changes will result in significant financial charges for Ford.

The revision of government data revealed that the US economy employed 818,000 fewer people than initially reported as of March 2024. This suggests that the labor market may have been cooling earlier than expected. However, economists emphasize that the updated data still reflects a labor market that is softening but not rapidly deteriorating.

Investors continue to approach the market with caution as they await the release of the Federal Reserve minutes, which will provide insight into the likelihood and extent of interest rate cuts in the upcoming months. Furthermore, market participants anticipate the earnings report of AI chipmaker Nvidia on August 28, as it will act as a test for the recent surge in AI-related stocks.

Overall, the market remains closely tied to upcoming economic data and corporate earnings as investors navigate through a complex landscape of trade tensions and monetary policy decisions. As expectations for a September rate cut persist, market participants continue to analyze various factors for clues about the future direction of the market.