{"id":197086,"date":"2024-08-23T15:00:00","date_gmt":"2024-08-23T15:00:00","guid":{"rendered":"https:\/\/ibkrcampus.eu\/campus\/uncategorized\/powell-signals-end-of-rate-hikes-wall-street-surges\/"},"modified":"2024-08-26T09:12:23","modified_gmt":"2024-08-26T09:12:23","slug":"powell-signals-end-of-rate-hikes-wall-street-surges","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/macro\/powell-signals-end-of-rate-hikes-wall-street-surges\/","title":{"rendered":"Powell Signals End of Rate Hikes, Wall Street Surges"},"content":{"rendered":"\n<p>Federal Reserve Chair Jerome Powell signaled a major shift towards cutting interest rates during his speech at the Jackson Hole Economic Symposium.<\/p>\n\n\n\n<p>Federal Reserve Chair Jerome Powell\u00a0<a href=\"https:\/\/www.cnbc.com\/2024\/08\/23\/watch-fed-chair-jerome-powell-speak-live-from-the-jackson-hole-conference.html\" target=\"_blank\" rel=\"noreferrer noopener\">signaled<\/a>\u00a0a major shift in U.S. monetary policy on Friday, indicating that the central bank is preparing to cut interest rates. Speaking at the annual Jackson Hole Economic Symposium, a premier gathering of global central bankers, Powell\u2019s remarks were closely watched by investors for clues about the Fed\u2019s future actions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-powell-signals-rate-cut-intentions\">Powell Signals Rate Cut Intentions<\/h2>\n\n\n\n<p>\u201cThe time has come for policy to adjust,\u201d Powell stated in his address, adding that \u201cthe direction of travel is clear.\u201d<br><br>These comments mark a significant departure from the Fed\u2019s recent stance of maintaining higher interest rates to combat inflation. Powell expressed growing confidence that the battle against&nbsp;<a href=\"https:\/\/tokenist.com\/investing\/how-to-hedge-against-inflation\/\">inflation<\/a>&nbsp;is on track, suggesting that the Fed is now ready to ease its monetary policy.<\/p>\n\n\n\n<p>The speech, delivered on August 23, 2024, comes at a time when markets were already anticipating potential rate cuts. Prior to Powell\u2019s remarks, there was a 78% probability priced in for a 25 basis point rate cut in September. This shift in policy is likely to be viewed positively by financial markets and could lead to the first Fed rate cut since 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stock Market Surges as Rate Cuts in Sight<\/h2>\n\n\n\n<p>As of 10:06 AM EDT on the day of Powell\u2019s speech, financial markets showed a positive response to the Fed Chair\u2019s comments.<br><br>The Dow Jones Industrial Average rose 292.1 points (0.72%) to 41,004.88, while the NASDAQ climbed 217.29 points (1.23%) to 17,836.64. The S&amp;P 500 also saw gains, up 49.96 points (0.9%) to 5,620.6.<\/p>\n\n\n\n<p>In the commodities market, gold prices increased by $17.4 (0.69%) to $2,534.1, and oil prices rose $1.24 (1.7%) to $74.25 per barrel. Treasury yields fell, with the 10-year yield dropping 0.052 to 3.81% and the 2-year yield decreasing 0.059 to 3.951%.<br><br>The U.S. Dollar Index weakened, falling 0.41 (-0.41%) to 101.1, while the&nbsp;<a href=\"https:\/\/tokenist.com\/investing\/implied-volatility\/\">VIX volatility index<\/a>&nbsp;decreased by 1.12 (-6.38%) to 16.43, indicating reduced market uncertainty.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted August 23, 2024 &#8211; <a href=\"https:\/\/tokenist.com\/powell-signals-end-of-rate-hikes-wall-street-surges\/\">Powell Signals End of Rate Hikes, Wall Street Surges<\/a><\/p>\n\n\n\n<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chair Jerome Powell signaled a major shift towards cutting interest rates during his speech at the Jackson Hole Economic Symposium.<\/p>\n","protected":false},"author":501,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146,147,8,12,148,7],"tags":[396,689],"contributors-categories":[326],"class_list":{"0":"post-197086","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-macro","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-text-articles","11":"category-traders-insight","12":"tag-powell","13":"tag-rate-hikes","14":"contributors-categories-the-tokenist"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - 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