Wall Street starts the week with gains after all three major U.S. indexes posted their biggest weekly gains of the year. The strong U.S. economic data helped ease fears about the health of the economic powerhouse that roiled markets in early August. The S&P 500 and Dow industrials are now near their all-time highs reached in July.
Comments from central bankers will test recent investor optimism and provide insight into the Federal Reserve’s path to lower interest rates. Minutes from the Fed’s July meeting will be released on Wednesday and will be followed by the U.S. economic symposium. Jackson Hole, which begins on Thursday. Fed Chairman Jerome Powell is scheduled to speak on Friday.
All indices are up. The S&P 500 is up 0.3%, the Dow Jones is up 0.3% and the Nasdaq Composite is up 0.6%.
Bond yields are stable. The yield on the 10-year US Treasury bond is holding just below 3.9%.
Wall Street and a winning week
Stocks in New York are coming off a winning week amid a volatile period for stocks. The broad S&P 500 rose nearly 4% in its best week since 2023. The Nasdaq jumped more than 5% as technology stocks led the rally, while the Dow rose nearly 3%.
August had started in a turbulent manner after disappointing data stoked recession fears and raised concerns that the Federal Reserve was lagging in cutting interest rates. These concerns sparked a global sell-off, pushing the S&P 500 on August 5 to record its worst day since 2022.
But recent data last week seemed to calm an anxious market and raise hopes that the economy can achieve a soft landing scenario. Investors saw good data on retail sales and initial jobless claims, as well as solid results from Walmart.
In addition, the 12-month inflation rate measured by the consumer price index for July slowed to 2.9%. This marked its lowest reading in more than three years.
Now, Wall Street is looking ahead to Powell’s Friday speech in Wyoming. Before that, traders will pore over minutes from the Fed’s most recent meeting due out on Wednesday. Investors are hoping to gain insight into the path of interest rates amid rising hopes for an upcoming cut.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
