S&P 500 (SPY) Report – 08/25/23

Good morning traders!

The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it… 

Stock futures made modest gains early on Friday, all in anticipation of Federal Reserve Chairman Jerome Powell’s significant speech at the Jackson Hole symposium. The recent attempt at a stock market rally faced setbacks on Thursday as major indexes turned lower, reversing course after nearing resistance near the 50-day line. This session ended with the indexes closing near their lowest points.

Scheduled for 10:05 a.m. on today, Jerome Powell’s policy speech at the annual Jackson Hole symposium holds importance as it’s expected to reflect a cautious approach while keeping the possibility of future rate hikes open. Given the recent significant rise in 10-year Treasury yields, market rates have tightened, potentially reducing the necessity for official Fed rate increases. Despite this, Powell might emphasize the challenge of bringing inflation back to the desired 2% level, impacting rate-hike expectations. Currently, investors view the likelihood of a Fed rate hike in late September at around 20%, while the odds of a hike by the November 1 meeting have risen to 45%. Anticipations of Fed rate cuts have been shifted towards next year.

Friday Economic Events:
Jackson Hole Symposium 8:00am ET

Fed Speaker Scheduled:
Jerome Powell 10:05am ET – High Volatility Expected

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