Wall Street recovering from last week’s losses, looking forward to this week’s big global financial markets market mover event: the Jackson Hole symposium, known for rallying the world of high finance.
At 4.15 pm Italian time, the Dow Jones advanced by over 225 points (+ 0.65%), to 35,347 points; the Nasdaq rises by 1.04% to 14.867 points, while the S&P 500 is + 0.75% at approximately 4.475 points.
This week, the trepidation of traders will be directed entirely to the words that will be uttered by the number one of the Federal Reserve, Jerome Powell, on the occasion of the opening of the Jackson Hole symposium which, again this year, contrary to what was expected, will take place in virtual and not in presence.
Powell will speak next Friday, August 27, at 10 am New York time (4 pm Italy time).
Traders await any indication that Powell can give regarding the start of tapering, i.e. the reduction of the asset purchase program (Quantitative easing) worth $ 120 billion per month, which the Fed has launched to protect the US economy from consequences of the Covid-19 pandemic.
Powell’s speech will be titled “The Economic Outlook”.
In a note reported by CNBC, Nomura economist Aichi Amemiya stressed that, “given the recent deterioration of (macro) data and the pandemic situation, we see the risk that Powell will focus on increasing uncertainty, due to the recent increase in Covid-19 infections “.
Consequently, “at the very least – reads Amemiya’s note – we believe that the recent comments from Fed officials support our view of a tapering announcement in December, despite the fact that the FOMC would prefer November, according to what emerged from the July meeting “.
Wall Street is recovering from last week’s declines, which saw the Dow Jones drop 1.1%, the S&P 500 drop nearly 0.6%, breaking a two-week bullish streak, and the Nasdaq retreating. 0.7%.
Today the purchases concern, in particular, the stocks of the pharmaceutical giants active in the production of anti-Covid-19 vaccines, after the Food and Drug Administration has released full approval for the two-dose vaccine produced by Pfizer and BioNTech: the title Pfizer rises by about 3%, BioNTech leaps by 8%, while Moderna is + 2%.
Also keep an eye on the unleashed rally of Trillium Therapeutics after the news of its purchase by Pfizer. The stock soars up to + 187%.
Buy also on crypto stocks after, for the first time since mid-May, Bitcoin prices have regained and exceeded the $ 50,000 threshold: thanks, among other things, to the assistance arrived again from PayPal, which announced that its UK customers (after those of the US) will also be able to buy, sell and hold Bitcoin and other cryptocurrencies starting this week.
This is the first global expansion of PayPal’s cryptocurrency service outside the United States. Coinbase and Microstrategy are up by around 2%. PayPal advanced by approximately 1.65%.