– – Wall Street closed mixed, with the S&P 500 and Nasdaq reaching new highs thanks to the rebound in tech stocks, after Fed number one Jerome Powell hinted in his Friday speech in Jackson Hole that the central bank will continue to be cautious about initiating tapering, reinforcing investor optimism on the economic rebound and easing fears of a sharp withdrawal of monetary stimulus.

The Dow Jones lost 0.16% to 35,399.90 points, the Nasdaq advanced 0.90% to 15,265.9 points and the S&P 500 rose 0.43% to 4,528.62 points.

On the tech stock front, Apple jumped 3.04% to a new all.time high, while Microsoft, Amazon.com and Alphabet (Google’s parent company) rose 1.29%, 2.15%, respectively. and 0.41%. High.growth tech stocks tend to benefit from expectations of lower rates because their value is highly dependent on future earnings. The benchmark index is following its longest streak of monthly records since 2018 in the wake of the promise of easy money, with investors appearing to be ignoring signs of a slowing economic recovery and rising Covid cases.

From the Jackson Hole Bankers Symposium, Powell confirmed plans to kick off tapering by 2021, but with caution. “Last week the market was prepared for the timing of tapering and this helped give markets a further boost to hopes that the US central bank’s accommodative policies will help offset some of the risks associated with rising infections,” he said. explained Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. “Although, if the Fed continues to be so accommodating in upcoming meetings, the markets may think there are problems coming up in the economic recovery process.“

The S&P 500 Index rose more than 3% in August – a period usually weak for equities – and analysts at Wells Fargo said last week that they expect the index to rise another 8% by the end of the year. It is also on track to record one of its best year.to.August returns of the past six decades, said Chris Larkin, chief executive of trading at E Trade Financial.

While US crude oil prices rose 0.7%, energy stocks slipped widely as investors worried about the possible long.term impacts on offshore oil production and damage to energy infrastructure caused by Hurricane Ida, which struck ashore on Sunday near Port Fourchon, Louisiana, a major hub for the US offshore oil industry. Falling bond yields also put pressure on banking stocks, with the S&P 500 banking index finishing lower.

The S&P 500 made 74 new 52.week highs and no new lows; the Nasdaq Composite recorded 137 new highs and 27 new lows.

By Editor

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