Wednesday, December 11, 2024

S&P 500, Nasdaq steady as countdown to Jackson Hole begins

Investors began counting on Fed Chairman Jerome Powell’s speech in Jackson Hole to reset rate cut expectations.

The S&P 500 (^GSPC) rose 0.2%, while the Dow Jones Industrial Average (^DJI) gained nearly 0.4%. The tech-heavy Nasdaq Composite ( ^IXIC ) also rose 0.1%.

Shares are set to consolidate last week’s strong gains in a measure of quiet returns for a market previously upset by worries about a possible recession. Last week’s rally recouped losses accumulated in early August sales — worries eased by encouraging inflation and consumer spending data as Wall Street cracked down on the economy.

Attention has already turned to Powell’s speech at the Fed’s Jackson Hole Symposium on Friday during a quiet week for economic data. As confidence grows in a “soft landing” for the economy — Goldman Sachs now sees a low chance of a recession — the question for investors is not whether the Fed will cut interest rates in September.

As of Monday morning, Traders set prices According to the CME FedWatch tool, there is a 72% chance the Fed will cut rates by 0.25% at that meeting and 28% odds of a 0.50% cut. But Wednesday’s release of minutes from the central bank’s July meeting will fuel those challenges.

Meanwhile, investors will focus on the Democratic National Convention, which begins Monday and may bring more insight into what to expect from presidential candidate Kamala Harris.

live2 updates

  • Gold pauses after hitting all-time highs

    Gold took a breather on Monday after hitting a record high last week on expectations that the Federal Reserve will cut interest rates this year.

    Spot gold retreated slightly after breaking above the $2,500 level for the first time last Friday. Meanwhile, gold futures (GC=F) fell 0.2% on Monday to settle near $2,530 an ounce.

    The precious metal has rallied this year amid ongoing geopolitical tensions and expectations that the Federal Reserve will soon begin its rate-cutting cycle.

    Prices have also risen as central banks continue to increase their reserves.

  • Stocks are steady as the countdown to Jackson Hole begins, with higher returns from retailers on deck

    U.S. stocks will get more views on consumer sentiment on Monday amid slight retail earnings as investors await Fed Chairman Jerome Powell’s speech in Jackson Hole on Friday.

    The S&P 500 (^GSPC) opened flat but near record highs, while the Dow Jones Industrial Average (^DJI) also rose above the flat line. The tech-heavy Nasdaq Composite ( ^IXIC ) added 0.1%.

    Investors will be watching closely for any signals on rate cut expectations when Powell speaks at the Jackson Hole Economic Forum on Friday.

    Wall Street will get more insights into consumer health this week as Lowe’s ( LOW ), Target ( TGD ), Macy’s ( M ), The DJX Companies ( DJX ) and PJ’s ( PJ ) Wholesale Club release quarterly results. These reports follow encouraging inflation and consumer spending data.

    Meanwhile, the Democratic National Convention begins Monday, which should give investors more insight into what to expect from presidential candidate Kamala Harris.

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