Chip Somodevilla
Major market averages drifted lower on Friday after Fed Chairman Powell’s Jackson Hole speech.
Early on, the Dow (DJI) was -0.1%, the S&P 500 (SP500) was (SP500) -0.2%, and the Nasdaq Composite (COMP.IND) was -0.3%.
“The weak ‘September effect’ may have been pulled forward into August, as it is now well known, and be just setting up for the typical Q4 year ahead repositioning rally,” strategist Ben Laidler said.
Rates rose as Fed chief Jay Powell’s addressed Wall Street at Jackson Hole. The 10-year Treasury yield (US10Y) was up 4 basis points to 4.27%. The 2-year yield (US2Y) rose 6 basis points to 5.08%.
See how yields are trading across the curve.
Yesterday, the market priced in another rate hike for the first time since the SVB crisis, with chances slightly favoring another 25 basis points in November. This morning, fed funds futures have edged back to a 51% chance of no change.
“We are prepared to raise rates further if appropriate,” and keep rates restrictive for awhile, Federal Reserve Chair Jerome Powell said Friday at the Kansas City Fed’s 2023 Jackson Hole Economic Symposium entitled “Structural Shifts in the Global Economy.”
“We will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data,” Powell added
Biggest stock movers this morning.
