Friends
Stocks reacted very favorably, in today’s trading session, to Fed Chair Powell’s comments this morning about jobs, inflation and just when the Fed might start to taper its asset purchases. The Fed Chair acknowledged that inflation has reached a level that meets their long term goals, but that employment, while getter better might still have a way to go. Nevertheless, the Fed Chair laid out that the FOMC will likely begin to taper their asset purchases before the end of the year.
As mentioned, stocks reacted favorably today which begs the question- did market participants become comfortable with the fact that the tapering process will begin soon, or did stocks go up because the market just doesn’t believe that the Fed Chair will actually begin tapering? Do market participants believe, like the Fed Chair, that inflation for the most part is transitory? Where’s my shoulder shrugging emoji?
As for today, by the close the Dow Jones Industrial Average was up 242 points to finish the day at 35,455. The S&P 500 was up 39 points to close at 4,509. The Nasdaq Composite Index was up 183 points to close at 15,129. Gold was up $25 to trade at $1,820 per ounce, while oil was up $1.29 to trade a $68.71 per barrel WTI.
Companies voiced their concerns about inflation throughout this past earnings season. They were very cautious in their outlooks given inflationary pressures and Covid-19 concerns. Now we move forward into the final third of the year. There’s a lot on our plate as market participants. We’ll help you navigate it all as we move forward. Stay tuned.
Have a great weekend everyone.
