Jakarta, CNBC Indonesia – Wall Street closed record, Friday (28/8/2021). The speech of the Fed’s boss, Jerome Powell, brought fresh air to the stock exchanges of the United States (US).
All of Wall Street’s major indexes rose. Where the Dow Jones was up 0.7% at 25,455.80, the S&P was up 0.9% at 4,509.37 (first close above 4,500) while the Nasdaq was 1.2% at 15,129.50.
Powell delivers his annual address at the Jackson Hole central bank symposium. He gave another signal that he would not rush to raise interest rates, arguing that current inflationary pressures would be temporary.
He also said about how the Delta variant of Covid-19 remains a risk. However, he hinted he could start the process of reducing massive bond purchases this year.
“We finally heard from the Fed chair and the market liked it. Although, he said what many would expect, that a reduction in bond purchases could start before the end of the year,” said Fawad Razaqzada, market analyst at ThinkMarkets. AFP.
“Powell’s comments were interpreted by the market as the Chairman of the Fed did not provide new news, and those who had bet on him by giving some clear timeline of reductions were left disappointed,” he added.
Another analyst from Bokeh Capital Partners, Kim Forrest said the same thing. According to him, the improvement in employment is the focus before inflation.
“Means tapering moved to a place far from what investors anticipated,” he said.
Meanwhile, shares of interactive exercise equipment maker Peloton fell 8.6% after reporting sluggish quarterly results. But clothing retailer Gap rose 0.6% after a positive earnings report.
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