Jakarta, CNBC Indonesia – The United States (US) stock market opened swinging into the green zone on Wednesday (08/25/2021), as investors drew up their next trading plan after the S&P 500 and Nasdaq indexes touched new highs yesterday.
The Dow Jones Industrial Average fell 55 points at 08:30 local time (20:30 WIB) and 30 minutes later it rose 18.1 points (+0.05%) to 35,384.32. The S&P 500 index edged 4 points (+0.09%) to 4,490.27 and the Nasdaq was down 6.2 points (+0.04%) at 15,025.99.
Yesterday, the Nasdaq closed touching a new record high of 15,019.80 so that throughout the year it has increased by 16%. It was the 29th new record high action so far this year.
The market is starting to be optimistic that the spread of the delta variant of the Covid-19 virus has reached its highest point. Fundstrat analyst Tom Lee assesses this can be seen from the decline in transmission rates in Florida and Texas.
“In the last 31 years, there have been 9 examples where the S&P 500 index scored a 10% increase in the first 8 months. On average over the next 4 months, the rally was 8.4%,” he wrote in a research report quoted CNBC International.
The focus of global investors this week is still centered on Jackson Hole, the Fed’s annual symposium which will take place Thursday and Friday. This event brought together central bankers from around the world to discuss each country’s monetary policy.
Fed Chair Jerome Powell will deliver a speech that will be broadcast live on Friday (27/8/2021) at 10:00 am US time or at 21:00 WIB. The speech entitled “The Economic Outlook” is expected to allude to the fate of the US$ 120 billion monthly bond purchase program that has been run by the Fed.
Investors will be listening closely to Powell’s speech and will be watching when the Fed might start rolling out the program tapering the. But so far, they expect the world’s strongest central bank will not rush.
CNBC INDONESIA RESEARCH TEAM
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