Jackson Hole style
Speeches by Fed chiefs at the Jackson Hole conference have usually boosted equities since the turn of the millennium, with the S&P 500 rising an average of 0.4% in the following week, according to data compiled by Bloomberg Intelligence.
However, the scene of last year is still fresh in the minds of investors, when stocks fell by 3.2% in the week that followed Powell’s remarks, according to “Bloomberg Intelligence”, after he warned against maintaining monetary policy austerity and tightening to fight inflation.
Meanwhile, two of Wall Street’s chief strategists disagree about the outlook for US stocks after a three-week streak of declines, as debate rages over whether the economy can avoid a recession.
While Michael Wilson of Morgan Stanley – who is not optimistic about the stock market – is likely to weaken investor sentiment further if they begin to “question the sustainability of the strength of economic performance”, his counterpart in the “Goldman Sachs” David Kosten says that there is an opportunity for investors to increase investment if The economy remained flat on its way to a soft landing.
Economists raise their expectations for the growth of the US economy
August is still poised to end a five-month winning streak for stocks. However, there are very few signs of widespread pessimism in the recent stock plunge.
Hedge funds and other large speculators cut their net short positions in futures contracts on the Standard & Poor’s 500 Index to the lowest level in 14 months, according to the latest set of CFTC data on Friday. Analysts say this month’s drop could be a welcome respite from the sharp gains that have sent valuations soaring.
2023-08-21 23:13:53
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