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5 Big Events in Financial Markets Today: All Eyes!
Spotlight on Powell’s Jackson Hole Speech
Investing.com – All eyes are on Federal Reserve Chair Jerome Powell as he prepares to deliver a major speech at the Jackson Hole economic symposium. With some policymakers suggesting the need for higher interest rates to counter inflation, U.S. stock futures have risen ahead of Powell’s speech. In other news, postpaid service provider Affirm sees its shares surge on stronger-than-expected quarterly results, while online mortgage company Better tumbles after going public through a SPAC.
Here are the five major events in the financial market to watch for on August 25 (Friday):
1. Fed Chairman Powell to Speak at Jackson Hole Speech
Federal Reserve Chair Jerome Powell is scheduled to speak tonight at an economic symposium in Wyoming. Traders eagerly await more insights from Powell on the U.S. central bank’s monetary policy outlook. Several policymakers have already expressed the need for further rate hikes to curb inflation. Mixed economic data, including a strong labor market and resilient U.S. economic activity, have fueled concerns about rising prices. Investors will pay close attention to Powell’s interpretation of these data and their potential impact on the Fed’s rate hike path.
2. U.S. Stock Futures Rise Ahead of Powell’s Speech
U.S. stock futures have edged higher as investors eagerly await Powell’s speech. Blue-chip stocks rose 0.24%, while technology stocks rose 0.11% as of 7:14 am Eastern Time. Boston Fed President Susan Collins’ comments about the need for further rate hikes to curb inflation offset optimism from chipmaker NVIDIA’s positive earnings report.
3. Affirm Soars on Strong Quarterly Performance
Shares of buy-now, pay-later provider Affirm surged in premarket trading after reporting more transactions on its platform than expected. Affirm’s partnerships with travel companies Booking.com and Cathay Pacific have captured the post-pandemic shift in consumer demand. Despite a loss and challenges in the face of a post-pandemic slowdown in online shopping and rising interest rates, Affirm’s gross merchandise value (GMV) increased by 25% to $5.5 billion in the second quarter.
4. Better Plummets After Going Public
Online mortgage company Better successfully listed on Nasdaq through a merger with a blank check company (SPAC). However, the stock price plummeted 90% on the same day. Better has been trying to merge with a SPAC since 2021, but plans to go public were delayed due to a recent drop in mortgage demand. Concerns over soaring mortgage costs and CEO Vishal Garg’s leadership have also impacted the company. Better is currently under investigation by the Securities and Exchange Commission.
5. Oil Prices Rebound, But Weekly Decline Possible
Oil prices have edged higher on concerns over slowing Chinese demand, rising U.S. supply, and a stronger dollar. The prices are on track for a second straight weekly loss. The oil market is also influenced by the anticipation of Powell’s Jackson Hole speech and a stronger dollar’s impact on crude prices.
These major events in the financial market will be closely watched by investors and market participants as they navigate the potential impacts on various sectors and market trends.
Compiled by Liu Chuan