Longing for recovery on Wall Street after the last two consecutive losing sessions, following the speech delivered in Jackson Hole by Fed number one, Jerome Powell.
Yesterday another negative session for Wall Street: the S&P 500 lost 0.67% to 4,030.61, the Nasdaq Composite lost 1.02% to 12,017.67 and the Dow Industrial Average fell 184 , 41 points (-0.57%), at 32,098.99.
The sell – which was brutal last Friday, with all three US equity indices losing more than 3% – was prompted by fears of a more hawkish-than-estimated Fed, after Powell renewed the central bank’s determination to curb the surge in inflation with further rate hikes, also at the risk of causing suffering to the US economy.
“Investors are realizing that the Fed is serious about reducing inflation, although recent data seems to suggest that inflation is starting to fall,” commented Rod von Lipsey, managing director of UBS Private Wealth Management. that the summer market rally was ephemeral and we continue to recommend investors to remain selective and focus on defensive equity sectors such as health care and dividend paying equities ”.
At around 8.05 am Italian time, futures on the Dow Jones rose by almost 90 points (+ 0.26%); those on the S&P advance by 0.32% and those on the Nasdaq by 0.41%.