Wall Street's Verdict On Powell's Jackson Hole Address: A Balanced Play On Interest Rates
Portfolio Pulse from AJ Fabino
Federal Reserve Chair Jerome Powell's address at the Jackson Hole Economic Policy Symposium indicated potential interest rate hikes, reiterating the Fed’s commitment to price stability. Wall Street analysts have varied interpretations of the speech. The possibility of an interest rate hike in September has risen to 21.5%, and by November, the chances stand at 52%. The SPDR S&P 500 ETF Trust (NYSE:SPY) fell nearly 1.3% on Powell's initial comments, but recovered to currently trade 0.44% higher from Friday's market open.
August 25, 2023 | 5:16 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) fell nearly 1.3% on Powell's initial comments, but recovered to currently trade 0.44% higher from Friday's market open.
The SPY ETF was directly impacted by Powell's speech, initially falling 1.3% but later recovering. The ETF's performance is closely tied to the broader market sentiment, which is currently influenced by the potential for interest rate hikes. However, the recovery suggests that the market has absorbed the initial shock and is adjusting to the new information.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80