US Stocks Rally as Investors Eye Fed Chair Powell’s Upcoming Speech at Jackson Hole
U.S. stocks advanced on Monday, continuing their upward momentum after recording the best weekly performance in a year. Investors are now focused on an upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which could influence expectations for future rate cuts.
The S&P 500 rose by 0.7%, setting the stage for its longest winning streak of the year. The Dow Jones Industrial Average gained over 200 points, or 0.5%, while the tech-heavy Nasdaq Composite increased by approximately 1%.
If Monday’s gains hold, the S&P 500 will achieve its longest streak of daily wins since November of last year, with the Nasdaq also on track for an eight-session winning streak.
Last week’s rally, driven by positive inflation and consumer spending data, helped recover losses from an earlier August sell-off, calming fears of a potential recession. As the market consolidates these gains, attention is turning to Powell’s speech on Friday, with investors eager to gauge the Fed’s next move.
Traders are currently pricing in a 72% chance of a 0.25% rate cut at the Fed’s September meeting, while 28% are betting on a 0.50% reduction, according to the CME FedWatch tool. However, the release of the Fed’s July meeting minutes on Wednesday could influence these expectations. Additionally, investors are keeping an eye on the Democratic National Convention, which begins on Monday and may offer more insight into what to expect from presidential nominee Kamala Harris.
