Hopes for lower rates have already helped the market recoup all the losses from the early August plunge, boosted by an impressive recovery. Initial jobless claims rose to 232,000 last week in line with market expectations.
Wall Street erased the initial rise this Thursday, which had the S&P 500 nearing record levelsas investors assessed how deeply the Federal Reserve could reduce interest rates in Septemberon the eve of a key speech by the president Jerome Powell.
The S&P 500 was within striking distance of record highs as investors eagerly await comments from Federal Reserve Chairman Jerome Powell expected later this week.
Now the S&P 500 yields 0.7%. The industrial average Dow Jones loses 0.6%while the Nasdaq Composite The New York Stock Exchange fell by 1.1%. Overall, the New York Stock Exchange fell, driven by the technology and basic materials sector, an industrial category made up of companies engaged in the discovery, development and processing of raw materials. This sector includes companies involved in the mining and refining of metals, chemicals and forestry products.
Stocks took a positive tone after minutes from the last Fed meeting showed several officials were open to a rate cut in July, indicating that a change in policy decision is likely next monthRising hopes for lower rates have already helped markets recoup losses from a plunge in early August.
As reported by Ámbito, the Fed’s Jackson Hole symposium began this Thursday, with the market on high alert for any change in tone by those responsible for monetary policy when Powell speak at the event on Friday.
Wall Street: employment data and expectations
Initial jobless claims rose to 232,000 last week, meeting expectations, while the prior week’s reading was revised up to 228,000.
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NYSE
Data released Thursday morning was under increased focus as an official review of payrolls showed the labor market —a key factor for policy makers— may have been cooling much sooner than initially thought. Signs of stress could influence how deeply the Fed cuts rates, with expectations of a 0.5% reduction in play.
Minutes from the Fed’s last meeting showed several officials were open to a rate cut in July, solidifying the likelihood of a change in September.
Source: Ambito
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