Reply To: Traders Market Weekly: September Effect on Risk Appetite

#64510
Truman
Participant

Dow +20.43 at 34119.77, Nasdaq +29.40 at 13493.75, S&P +5.56 at 4381.87

There has been some roller-coaster action in the market following Fed Chair Powell’s speech at the Jackson Hole Symposium.

He stuck by the Fed’s 2.0% inflation target; he reiterated that the process of getting inflation back down to 2.0% still has a long way to go; and he acknowledged that the Fed will raise rates again if it is appropriate. These are all things he said following the last FOMC meeting.

Notably, he concluded his remarks with the thought that the Fed “…will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”

What was missing from today’s remarks was any notion that the Fed is thinking at all about cutting rates.

The indices have faded from their pre-speech levels and the market has turned more mixed, lacking any concerted leadership.

The 2-yr note yield is up seven basis points to 5.08% and the 10-yr note yield is unchanged at 4.24%.