Published: 25 August 2023

Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on August 25, 2023:

• The Federal Open Market Committee (FOMC) is "strongly committed to returning inflation to our 2 percent objective."
• The FOMC will continue to raise interest rates "expeditiously" until inflation is under control.
• The FOMC is "prepared to use our tools more forcefully if needed."
• Reducing inflation is likely to require a "sustained period of below-trend growth."
• There will "very likely be some softening of labor market conditions."
• Higher interest rates, slower growth, and softer labor market conditions will bring down inflation, but they will also bring "some pain to households and businesses."
• The FOMC is "mindful of the risks" to the economy, but it is "firmly committed" to its price stability mandate.

Powell's speech was widely interpreted as a signal that the FOMC is prepared to take aggressive action to combat inflation, even if it means causing some economic pain. The speech initially sent stock prices down and bond yields up, as investors priced in the likelihood of higher interest rates in the coming months.  At the close of the trading session, the DJIA and S&P ended higher

It remains to be seen how successful the FOMC will be in bringing inflation under control without causing a recession. However, Powell's speech made it clear that the central bank is willing to do whatever it takes to achieve its price stability mandate.

Published: 20 August 2023

Recap of Last Week's Stock Market Trading  -  Friday 8/18/2023

The Dow Jones Industrial Average closed at 34500.66.

The S&P 500  closed at 4,369.71

The Nasdaq Composite Index closed at 13,644.85.

The CBOE VIX closed at 17.30

• The market was volatile throughout the week, with investors reacting to a number of news events, including:
  • The downgrade of the credit ratings of several major banks by Moody's.
  • The slowing of US economic growth in the second quarter.
  • A number of weak earnings reports from tech companies.
  • The release of inflation data for July.
  • Uncertainty regarding the Federal Reserve's future decision to raise interest rates.
• The tech sector was the weakest performing sector of the market, with the NASDAQ Composite falling on the week.
• The energy sector was the strongest performing sector of the market, with the S&P 500 Energy Index rising on the week.
• The overall outlook for the US stock market remains uncertain. The market is facing a number of headwinds, including rising interest rates and the potential for a recession. However, there are also some positive signs, such as the continued growth of the US economy and corporate earnings.

Key factors that could affect the stock market:

• The pace of economic growth in the United States.
• The direction of inflation.
• The actions of the Federal Reserve.
• The performance of corporate earnings.
• Geopolitical events.

Published: 12 August 2023

Recap of Last Week's Stock Market Trading  -  Friday 8/11/2023

• The Dow Jones Industrial Average fell 0.3%, to close at 35,281.40.
• The S&P 500 fell 0.6%, to close at 4,464.05.
• The Nasdaq Composite Index fell 1.9%, to close at 13,644.85.

The stock market had a negative week, with all three major indexes ending the week lower. The decline was driven by concerns about inflation, which remained elevated, and the potential for a recession, as the Federal Reserve continues to raise interest rates in an effort to cool the economy.

Here are some of the key events that took place in the US stock market last week:

• Inflation remained elevated. The Consumer Price Index rose 0.2% in July, bringing its year-over-year increase to 3.2%, a tick below expectations.
• Producer prices rose 0.3% in July, a tick above expectations.
• The Federal Reserve released minutes from its July meeting, which showed that policymakers believed in the need to continue raising interest rates in order to combat inflation.

Published: 07 August 2023

Recap of Last Week's Stock Market Trading  -  Friday 8/5/2023

• The Dow Jones Industrial Average fell 0.12%, to close at 35,328.05.
• The S&P 500 fell 0.84%, to close at 4,530.82.
• The Nasdaq Composite Index fell 1.33%, to close at 14,040.94.

The stock market had a negative week, with all three major indexes ending the week lower. The decline was driven by concerns about inflation, which remained elevated, and the potential for a recession, as the Federal Reserve continues to raise interest rates in an effort to cool the economy.