The trajectory of U.S. stocks was unclear on Friday as Wall Street attempted to recover from Thursday’s decline and traders analysed Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole.
After climbing over 200 points to session highs, the Dow Jones Industrial Average lost 36 points, or 0.1%, of its value. In contrast to the Nasdaq, which fell by about 0.3%, the S&P 500 fell by 0.2%.
As soon as Powell’s comments were made public, stocks started to fluctuate. According to the Fed chair, the central bank is prepared to boost rates further to fight inflation.
In prepared remarks, Powell stated that while inflation has decreased from its peak, which is a positive development, it still remains too high. “We are prepared to hike rates further if necessary and want to maintain the current level of restraint until we are sure that inflation has peaked.
Source (CNBC)
