US stocks extended record highs on Thursday after Federal Reserve Chairman Jerome Powell spoke at this year’s Fed annual Jackson Hole, Wyoming conference. Both the S&P 500 and Nasdaq composite indexes set all-time highs shortly after the market opened.
Powell outlined the central bank’s overhauled strategy for controlling inflation and avoiding future crises. Equity futures turned positive as he spoke and opened higher after an overnight sell-off.
Powell revamped the central bank’s policy framework on Thursday, to better handle the US inflation rate and achieve maximum employment.
The Fed will now target an inflation rate that averages 2% over time, differing from the previous goal of maintaining inflation at 2%, Powell said.
He said “Our revised statement reflects our appreciation for the benefits of a strong labor market, particularly for many in low- and moderate-income communities, and that a robust job market can be sustained without causing an unwelcome increase in inflation.”
Read also; TikTok CEO quits amid battle with Washington
On the economic data front, initial jobless claims stood at 1 million for the week ending August 22, in line with consensus estimates. Continuing claims, which measure the sum of Americans receiving unemployment benefits, totaled 14.5 million for the week that ended August 15, a slight decrease from the prior week.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday according to Business Insider
- S&P 500: 3,492.98, up 0.4%
- Dow Jones industrial average: 28,556.57, up 0.8% (225 points)
- Nasdaq composite: 11,687.95, up 0.2%
Spot gold is down by as much as 1.37%, to $1,926.63 per ounce. Gold briefly surpassed $2,000 per ounce earlier this month as investors sought safe haven due to volatility of the economy.
Oil prices are down. West Texas Intermediate crude declined by 1.75%, to $42.63 per barrel. Brent crude, oil’s global benchmark, fell 1.86%, to $44.79 at the time of this report.
Written by;
Ifunanya Ikueze
