Stock Market Gains Ahead of Powell's Speech: Market News Today

The US stock market displayed a modest upward movement, driven by the anticipation of an important speech by Federal Reserve Chair Jay Powell.

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Positive Start

The early hours of trading revealed a positive trend in the market. The S&P 500 index (^GSPC) saw a 0.4% increase, accompanied by a similar 0.4% rise in the Dow Jones Industrial Average (^DJI). The Nasdaq Composite index (^IXIC), known for its tech-heavy components, also joined the trend with a 0.4% gain. These early gains aimed to recover from the previous day's slight setback.

Powell's Remarks Awaited

All eyes are fixed on the imminent speech by Federal Reserve Chair Jay Powell. Scheduled for 10:05 a.m. ET, Powell's talk at the annual Jackson Hole Economic Symposium has already begun to influence market sentiments.

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Recap of Thursday

Thursday saw a downward trend in the market, particularly evident in the Nasdaq, which experienced a nearly 2% decline. This reversal followed an initial surge prompted by Nvidia's (NVDA) robust earnings report.

Interest Rates in Focus

The topic of interest rates took center stage after Boston Fed President Susan Collins suggested the possibility of raising rates to curb inflation. This perspective played a pivotal role in shaping market sentiment on Thursday.

Reflecting on the Past Year

Looking back at the previous year, Powell's speech during the Jackson Hole event had a significant impact on the market, resulting in a notable drop. He articulated that interest rates would continue to rise until inflation subsided. Since that speech, interest rates have surged by 300 basis points, reaching their highest level since 2001.

Hopes Pinned on Powell's Words

Expectations are high for Powell's address at the Jackson Hole Economic Symposium. Market participants anticipate gaining valuable insights into the Federal Reserve's stance on interest rates. This speech coincides with the opening of the trading day.

Encouraging Signs in the Market

Early trading hours brought forth encouraging signs in the market. The S&P 500 index (^GSPC) demonstrated a 0.4% increase, suggesting a positive start. Similarly, the Dow Jones Industrial Average (^DJI) saw a 0.4% uptick. The Nasdaq Composite index (^IXIC) outperformed the others with a 0.5% rise, indicating a potential rebound from the previous day's dip.

Stocks to Monitor Prior to Market Opening

Before the official market opening, specific stocks garnered attention on Yahoo Finance's trending tickers page:

• Disney (DIS): Disney's stock faced a 4% decline, reaching a nine-year low. Skepticism prevailed on Wall Street regarding the company's ongoing efforts to revamp its trajectory.

• Affirm (AFRM): The payments company witnessed an 8% surge in its shares due to better-than-expected revenue results for the fourth quarter.

• Nordstrom (JWN): Nordstrom's shares encountered a 3% pre-market drop, reversing gains observed late on Thursday. The company's cautious outlook for the latter part of 2023 influenced this shift.

• Digital World Acquisition Corp. (DWAC): Shares of DWAC, which is set to merge with Donald Trump's media enterprise, experienced a 3% decline. This followed the former US president's return to X, formerly known as Twitter.

• Workday (WDAY): Workday's shares exhibited a 3% increase as their earnings surpassed analyst estimates, contributing to the positive sentiment in early trading.

Also Read:

• Markets React as Investors Await Powell's Speech: Asian Stocks Follow Wall Street's Lead
• Federal Reserve Chief Powell Talks About Possible Changes in Interest Rates Due to Inflation