Stocks cheer Powell speech
|Jerome Powell delivered the goods for stock markets in his speech today, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Stocks rally as Powell opens door for September cut
The whole week has been building up to today’s speech by Jerome Powell. For once, the Fed chairman may have done something to please the White House, as he signals that a September cut is now more likely. Stocks have surged in the wake of his speech, with the S&P 500 clawing back almost all the losses this week and indices in both the US and Europe firmly in positive territory. Worries about higher inflation have been cast aside for now, as investors look forward to the US economy powering ahead in the autumn.
Dollar slumps on rate cut expectations
It’s not just stocks that have been given a boost by Powell’s comments today. A slumping dollar has meant that gold is firmly back on the front foot and looks well-positioned to head back to the previous record high. All told it has been the perfect afternoon session for stock bulls and dollar bears, and now all eyes shift to Nvidia’s earnings next week.
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