Powell's Jackson Hole Speech: Markets Brace for Fed's Next Move on Rates
Federal Reserve Chair Powell to Address Economic Outlook at Jackson Hole Conference
Federal Reserve Chair Jerome Powell is set to deliver a highly anticipated speech at the Fed’s annual conference in Jackson Hole, Wyoming, on Friday at 10 a.m. ET. The address comes as markets closely monitor the central bank’s stance on interest rates and monetary policy.
Ahead of Powell’s remarks, U.S. Treasury yields show a notable inversion, with shorter-term bonds yielding higher than longer-term ones. The 10-year Treasury yield stands at 3.85%, while the 1-month yield is at 5.32%.
Major stock indexes are hovering near their 52-week highs, with the S&P 500 just 1.75% below its peak from a month ago. The Dow Jones Industrial Average and Nasdaq are similarly positioned, at 1.6% and 5.6% from their respective highs.
In corporate news, Walgreens has hit lows not seen since 1997, while Walmart reached an all-time high. Meta Platforms also touched a record high, continuing its strong performance in August.
The insurance sector saw multiple companies, including Arch Capital, Aflac, Arthur J. Gallagher, and Brown & Brown, hitting all-time highs. The S&P Insurance Industry index is up 24% year-to-date.
Healthcare stocks also showed strength, with AbbVie, Boston Scientific, HCA Holdings, Intuitive Surgical, Eli Lilly, and Universal Health Services all reaching new peaks.
In the real estate sector, several REITs, including Extra Space Storage, Public Storage, and Simon Property Group, are trading at multi-month or multi-year highs.
Internationally, the Europe STOXX 600 index has risen in eight of the last nine trading sessions, though it remains 8% below its June high.
As markets await Powell’s speech, investors will be looking for insights into the Fed’s assessment of inflation, economic growth, and potential future policy actions.
