· The Dow Jones Industrial Average rose slightly on Thursday as investors awaited a key speech from the Federal Reserve’s top official.
The 30-stock index climbed 49.51 points, or 0.2% to 26,252.24 in a volatile session that saw it rise as much as 186.05 points and drop 103.72 points. Boeing’s 4.2% gain pushed the Dow higher. The S&P 500 ended the day just below the flatline at 2,922.95 while the Nasdaq Composite slid 0.4% to 7,991.39.
Fed Chairman Jerome Powell is set to deliver a speech Friday at a yearly central banking symposium in Jackson Hole, Wyoming. The stakes are high for Powell as investors will look for hints that the Fed will cut rates in September. Market expectations for a September rate cut are at 93.5%, according to the CME Group’s FedWatch tool. The Fed cut rates by 25 basis points in July, citing “global developments” and “muted inflation.”
Powell’s speech comes as President Donald Trump continues attacking the U.S. central bank, pressuring it to lower rates. On Thursday, Trump tweeted: “The Economy is doing really well. The Federal Reserve can easily make it Record Setting.”
“Trump is forcing these guys to move, but they shouldn’t be doing anything. You’ve got tight unemployment and companies coming out with pretty good earnings — especially the retailers,” said Larry Benedict, founder of The Opportunistic Trader. “I would be very surprised if he signaled something very dovish only because it would be a slap in the face of an independent Fed.”
· European stocks closed lower on Thursday as fears of a recession rose ahead of a key speech from Federal Reserve Chairman Jerome Powell.
The pan-European Stoxx 600 closed provisionally down 0.5%, with the majority of sectors and major bourses tipping into negative territory.
· Asia Pacific markets were subdued Friday morning as investors looked ahead to an important speech from U.S. Federal Reserve Chairman Jerome Powell later in the day.
Japan’s Nikkei 225 edged up 0.09% in early trade, while its Topix index added 0.15%. South Korea’s Kospi lost 0.25%.
Tensions between Japan and South Korea escalated on Thursday when Seoul said it was cancelling an intelligence-sharing pact with Tokyo amid a bitter trade dispute.
In Australia, the ASX 200 was almost flat.
Reference: Reuters
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