SPX: pivoting is “nearing”The Jackson Hole Symposium is a yearly event closely watched by the markets. The speech held by Fed Chair Powell, revealed that the Fed is “nearing” its first rate cut. Markets are now almost sure that the Fed will make such a decision at their September FOMC meeting. The US equity markets reacted positively to Powell`s rhetoric, bringing the S&P 500 to the level of 5.634. The index gained 1,45% for the week, and is nearing its all time highest level reached during July this year at the level of 5.668.
Once again tech stocks were the ones that pushed the market to the upside. Nvidia and Tesla were higher by 4% over the week. Also other stocks were finishing the week higher, supported by the investor`s expectations that the environment of increased interest rates will support the future growth of companies. Analysts from the Swiss UBS bank noted their expectations that the eroded interest rates on cash holdings will impact investors to switch their holdings back to the equity market, in expectation of higher returns. Still, it should be considered that some investors are still expecting a recession in the US.
