Thursday has proven itself to be a very volatile day on Wall Street as the list of outside factors impacting the trading day continues to rise…
The big event scheduled for the day is the FED’s annual meeting in Jackson Hole, Wyoming. Though this year the event is being held remotely due to continued virus concerns, the discussions within the meeting are certainly going to make their way onto the trading floor, for better or worse.
Even more hotly anticipated, however is FED Chair Jerome Powell’s post-meeting speech where he will fill the world in on the details of the meeting, giving investors a peak into the FED’s current thinking and allowing them to act accordingly.
Today we discuss Thursday’s FED meeting and Powell’s coming comments, diving into the major impacts they are making on today’s markets and your investments.
The Jackson Hole Meeting
Heading into the FED’s Jackson Hole summit, the markets found themselves running higher with the S&P up 1% and the more interest-rate-sensitive NASDAQ 100 up by 2%.
The annual Jackson Hole meeting gathers dozens of central bankers, policy makers and economists to discuss the current health of the U.S. economy and future FED related policies. The venue is also often used by FED chiefs to make major policy announcements.
As noted above, however, this year will be one for the history books as the annual meeting is to be held virtually due to rising concerns over the continued spread of Covid-19 and its variants.
Some market-watchers have been expecting the conference could be a key moment when FED Chair Jerome Powell could give hints about tapering the FED’s $120 billion in monthly asset purchases that have propped up the market since the onset of Covid-19.
Despite these expectations, however, many others believe Powell is not currently in the position to rock the boat with the current health of the U.S. economy still in limbo. It’s believed the FED will still want to see upcoming jobs and inflation data and more information on how the coronavirus Delta variant impacts the economy before making any final decisions.
Powell’s Update
Speaking of Powell, the FED Chair has recently been renominated for his post by President Joe Biden, a decision that has been met with mixed reactions from those on the Hill.
As for Powell’s part in this week’s events, Powell will be under fierce scrutiny this Friday as he takes center stage for his scheduled speech on the details of the FED meeting.
Many traders are expecting Powell to “beat around the bush” a bit during his upcoming speech as U.S. economic growth comes to a standstill at its latest peak but Aberdeen Standard Investments economist James McCann recently told Barron’s that the lack of consensus makes it tough for Powell to even be able to demonstrate conviction when he speaks this Friday. Later adding, “if there’s no clear signal coming from the committee, then there’s no clear signal that Powell can give at this stage. And markets like clear signals much more than delicate nuance.”
We’ll soon find out what updates Powell is able to share as he steps under the spotlight this Friday at 10am. Until then, traders are left to speculate and hope…
Learn More Here…
If you’re interested in hearing Powell’s comments, we encourage you to listen in this Friday at 10am ET on YouTube! In the meantime, we invite you to join DTI founder and head trader Tom Busby below as he explains his take on today’s markets and shares the details of his latest trading strategies!
P.S. – If you’re one of the few who hasn’t joined Tom Busby’s TCASH program, then do yourself a favor and CLICK HERE NOW to discover the reason why it has become one of DTI’s most liked and profitable programs!