U.S. Stocks Mixed Ahead Of Powell’s Jackson Hole Speech

All Eyes On The Fed

Yesterday, S&P 500 closed at record highs as traders bought stocks in anticipation of dovish commentary from Fed Chair Jerome Powell who is scheduled to start talking about Fed’s policy a few minutes before the market open.

The market continues to expect that the Fed will promise to keep rates at the bottom for a long time, even if inflation starts to get above 2%. Dovish commentary from Powell will provide more fuel for the current rally.

In the opposite scenario, stocks may find themselves under pressure while the U.S. dollar will get a boost. Traders should expect a volatile opening of today’s trading session as stocks will react to Powell’s commentary.

WTI Oil Fails To Settle Above $43.50 Despite Hurricane Laura

Oil prices failed to develop upside momentum after Hurricane Laura made landfall as a Category 4 storm. Later, Laura was downgraded to a Category 3 storm.

At this point, it is too early to evaluate the damage done by Laura, but oil traders do not believe that the hurricane had a significant longer-term impact on oil production.

In addition, traders are worried by the continued spread of coronavirus. India, which has already registered more than 3.3. million cases, can’t get the disease under control while Europe faces a second wave, especially in France and Spain.

Initial Jobless Claims Decline To 1 Million

The U.S. has just provided Initial Jobless Claims and Continuing Jobless Claims reports.

Initial Jobless Claims decreased to 1 million, in line with the analyst consensus. Meanwhile, Continuing Jobless Claims declined to 14.54 million compared to the analyst consensus of 14.45 million.

U.S. has also released the second estimate of GDP Growth Rate for the second quarter. GDP Growth Rate was -31.7% compared to analyst consensus of -32.5%.

The second-quarter GDP Growth Rate was a bit better than expected, and S&P 500 futures are mixed in premarket trading after the release of the reports. However, the situation may change quickly after the beginning of Powell’s speech.

For a look at all of today’s economic events, check out our economic calendar.