Traders are watching and waiting for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium.
The baseline expectation is that Powell will avoid committing to any move at the September meeting. Instead, he is likely to repeat that decisions will depend on the full set of economic data released between now and then.
If Powell were to even weakly signal a rate cut in September, the S&P 500 could rally. However, the reaction may be limited since markets are already pricing in a high probability of easing. According to CME’s FedWatch tool, traders see a 71% chance of a quarter-point cut in September.
Looking beyond September, a hint of rate cuts in October, November, or December could weaken the U.S. dollar and provide support for gold.
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
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