All three most important indices on Wall Street welcomed the announcement and rose around 10:34 am et 2% (8 p.m. India time). Nasdaq Composite was the best win and reached the day of the day of 21,523.23. In the meantime, the Dow Jones Industrial Index rose by 2% or 870 points to 45,654.63, while the S&P 500 index climbed 1.6% to scale 6,469.61.
Angstermeter CBOE Volatility Index fell by 12% to 14.68.
The controversial speech said that the labor market is confronted with “downward risks” and that the Federal Reserve will soon have to lower the interest rates to support the economy. Powell suggested that the labor market could benefit from lower rates, which the FED kept unchanged for eight months.
In his speech, he suggested that the FED may have to lower the rates during the next meeting in September. He mentioned growing risks for the economy, including any “unusual” behavior on the labor market that could become a reason for concern. His comments come at a time when the Trump administration increases the pressure for speed reductions. Trump has repeatedly called for tariff reductions, with the argument that there is “no inflation” and says that a reduction would lower the interest payments of the government on its debts of $ 37 trillion.
Powell spoke at the annual economic symposium of the FED in Jackson Hole, Wyoming, a conference with around 100 academics, economists and officials from the Central Bank from all over the world.
Top gainers and losers
American Express was the top win around this time and shot 3.5% and was followed by Caterpillar Inc., Home Depot Inc., Nike Inc. And Sherwin-Williams, each of whom had risen more than 3%. Among the best losers, Walmart Inc., Johnson & Johnson, Coca-Cola Co. and Verizon Communications Inc. who fell between 1.25% and 0.10%.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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