Wall Street headed higher and crude prices jumped on Monday, at the outset of a week marked by light volume and heavy economic data, boosted by mounting hopes that the Federal Reserve will take a rate-hike breather in September.
All three major U.S. indexes were solidly green amid light trading at the start what is considered the last unofficial week of summer, one jam-packed with a plethora of crucial economic indicators.
“It’s a positive continuation of Friday’s movement after the market realized Powell was neither hawkish or dovish, he was reiterating what everyone knew,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
“Inflation is coming down, the economy is not collapsing and there’s a high likelihood that the Fed will remain on hold this September and most likely will be on hold for the rest of this year.”
In remarks delivered at the central bank conference in Jackson Hole, Wyoming, Fed Chair Jerome Powell had on Friday said inflation was still too high, but noted that economic uncertainty called for “agile” monetary policy making and that the Fed would proceed “carefully”.
Beijing announced that it would cut its stamp duty on stock trading in half, following its earlier move to support affordable housing on Friday, which fueled hopes that China’s languishing post-COVID economy might shift out of low gear.