The S&P 500 rises 0.7%. the dow scale 274 points, or 0.8%, and the nasdaq adds 0.8%. US stocks snapped a three-week losing streak last week as investors seemed to find relief in the words of the Federal Reserve Chairman, Jerome Powellwho mentioned that the central bank “I would proceed carefully” about the interest rates.
Market attention is shifting from Powell’s speech to the corporate earnings and new economic data that could provide clues about the health of the US economy.
Wall Street: the recovery after the Fed
Wall Street appears to be coming out of a rough patch since last Friday, after Powell said that the country’s central bank “will proceed with cautionregarding interest rates.
“The weak reaction of Treasury yields to the Jackson Hole rhetoric shows that US Federal Reserve Chairman Jerome Powell is probably hit the right tone when it comes to keeping further policy tightening on the table, but at the same time not shaking market confidence,” he said. Tim WatererChief Market Analyst at KCM Trade.
In a highly anticipated speech, Powell said Friday that the Federal Reserve will base upcoming interest rate decisions on the latest data on inflation and the economy. He said that although the price hike has come down from its peak, it’s still too high and that the Fed could raise rates again if necessary.
Some market watchers expected Powell to say that the Fed he had finished with his interest rate hikes, which serve to control inflation, but at the cost of slowing down the economy and hurting investment prices.
But Powell was also careful to say that he is aware of the risks of going too far on interest rates and doing “unnecessary damage to the economy.” Taken together, the comments weren’t much different from what Powell had said before, according to analysts.
High-profile economic data will be released this week, including consumer confidence, the second estimate of gross domestic product, a wave of labor market data and a report on consumer spending that includes a measure of inflation closely watched by monetary policy makers.
Companies posting quarterly results this week include Best Buy, Salesforce, and Dollar General.
Source: Ambito
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