Market Reactions To Fed Chair Powell's Jackson Hole Speech
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Wall Street cheered remarks from Federal Reserve Chair Jerome Powell in Jackson Hole opening the door to a rate cut in September.
Live Updates Live Coverage Updates appear automatically as they are published. Friday Wrap-up 4:10 pm The Vanguard S&P 500 ETF closed at 593.22 Friday, up 1.5% for the day but only 0.3% for the week.
President Donald Trump has exerted unprecedented influence on the U.S. economy, and global financial markets, since his return to the White House earlier this year. But his efforts to dictate Federal Reserve interest rates,
If the Federal Reserve follows through on Chair Jerome Powell's signal that the door is open to a September rate cut it will mark a nine-month stretch between easings. History has shown that stocks have tended to perform well after lengthy pauses in the past,
The Dow Jones Industrial Average soared 846 points Friday, reaching another record. The S & P 500 jumped 1.5%, landing just below the all-time high it set last week. The Nasdaq composite climbed 1.9%.
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
Minutes after the speech, investors pegged the chances of a quarter-point interest rate cut at 91%, up from a 75% chance assessed one day earlier, according to CME FedWatch Tool, a measure of market sentiment. Despite the market's positive reaction to Powell's speech, the Fed chair voiced a note of caution for the outlook for the U.S. economy.
When Nvidia, the chip producer, reports earnings next week, investors expect the S&P 500 to have a bigger reaction than when the Fed chair delivers a big speech on Friday.
The stock market surged Friday after Federal Reserve Chair Jerome Powell signaled openness to the central banks cutting rates soon.
Stocks might get their September interest-rate cut, but the Federal Reserve could still disappoint the market, as soon as this month.
The stock market is heading into a catalyst-filled week as Fed Chair Jerome Powell gets ready to speak at Jackson Hole and big retailers report earnings.
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