Check back for updates throughout the trading dayU.S. stocks moved firmly higher in early Friday trading, while Treasury yields and the dollar were largely unchanged, as investors reacted to a key speech from Federal Reserve Chairman Jerome Powell that could clarify the central bank's plans for autumn rate cuts. Updated at 10:10 AM EDTPowell boostStocks are extending their early gains after Powell dropped his strongest signal to date that the Fed will begin the first of a series of rate cuts next month in Washington."The time has come for policy to adjust," Powell said as part of his prepared remarks to the Jackson Hole symposium. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."The S&P 500 was marked 54 points, or 0.97% higher following the release of Powell's remarks, with the Dow rising 308 points and the Nasdaq gaining 233 points.With the full text of Powell's speech out... pic.twitter.com/du5Dasgjq7— Chris Ciovacco (@CiovaccoCapital) August 23, 2024
Updated at 9:37 AM EDTSolid openThe S&P 500 was marked 35 points, or 0.64%, in the opening minutes of trading, while the Nasdaq added 143 points, or 0.81%.The Dow jumped 220 points while the small-cap Russell 2000 gained 17 points, or 0.80%, with Powell's Jackson Hole speech firmly in focus."Powell will likely be happy to keep
markets guessing on the size of the move in September,
and we doubt he will want to push rate expectations for this
year down further, given the near 100 basis points of easing already
discounted by year-end," said Ian Shepherdson of Pantheon Macroeconomics.S&P 500 Opening Bell Heatmap (Aug. 23, 2024)$SPY +0.59%?$QQQ +0.77%?$DJI +0.56%?$IWM +1.08%? pic.twitter.com/o2nWWsJEq3— Wall St Engine (@wallstengine) August 23, 2024
Stock Market TodayMarkets have been keying on Powell's speech, the keynote address to the Fed's annual central banking retreat in Jackson Hole, Wyoming, for much of the past month and gave back gains late yesterday amid concerns that he may deliver a neutral or even hawkish message when he speaks at 10 am Eastern Time.Traders have locked in bets that the Fed will start easing its benchmark lending rate, which sits at a two-decade high of 5.375%, next month in Washington. But they are still uncertain as to the pace and scale of the expected cuts.Part of that comes from a resilient domestic economy, which continues to defy recession forecasts, with another aspect tied to inflation slowly easing.
Fed Chairman Jerome Powell will keep markets on edge ahead of his keynote address to the central bank's Jackson Hole symposium later this morning.Bloomberg/Getty Images
With global investors on edge and U.S. stocks within touching distance of their July all-time highs, Powell's speech is expected to be crucial for market direction, alongside next week's earnings from tech giant Nvdia (NVDA) , heading into the final months of the year. "Powell is expected to lay the groundwork for the Fed’s first rate cut in over four years," said Adam Turnquist, chief technical strategist at LPL Financial. "Signs of reduced pricing pressures and cooling economic growth will likely be enough for policymakers to start reducing the target rate."Related: Fed Chair Powell's Jackson Hole speech might disappoint marketsCME Group's FedWatch continues to put the chances of a 50 basis point cut next month at around 26.5%. Those odds will surely move quickly when Powell begins to speak, and they suggest that investors are betting on at least a full percentage point of reductions between now and year's end. The market's key VIX volatility gauge is also on the move, rising 4.4% to $16.98 in overnight trading as markets braced for action in the wake of Powell's address.On Wall Street, stock futures tied to the S&P 500 suggest an opening bell gain of around 29 points, with the Dow Jones Industrial Average called 145 points higher. The tech-heavy Nasdaq, meanwhile, is priced for a 150-point opening bell advance. In the bond market, benchmark 10-year Treasury note yields were holding at 3.861% heading into the New York trading session, with rate-sensitive 2-year notes pegged at 4.008%.The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.1% lower at 101.404, the lowest since late December More Economic Analysis:Kamala Harris sees markets stars align against Donald TrumpCPI report upsets betting on big Fed rate cutMain Street businesses push back on Wall Street recession gloomIn overseas markets, Europe's Stoxx 600 was marked 0.27% higher in Frankfurt, while Britain's FTSE 100 added 0.26% in London.Overnight in Asia, the Nikkei 225 closed 0.4% higher in Tokyo following hawkish comments on rates from Bank of Japan Governor Kazuo Ueda, while the regional MSCI ex-Japan benchmarked edged 0.08% lower into the close of trading. Related: Veteran fund manager sees world of pain coming for stocks
