The Dow Jones Industrial Average stockindex has rebounded 56.4% from its trough observed in March, marking it one of the best-performing stock indices globally after the S&P 500 and Nasdaq index.
Last week, Federal chairman Jerome Powell’s speech at the Jackson Holeeconomic policy symposium sent a clear dovish message to stock investors – that the central bank will allow inflation to overshoot for a period of time before stabilizing at a long-term target of 2%.
That meant, the Fed is likely to keep its monetary policy accommodative in the foreseeable future, even if the economy faces overheating and rising inflation during the recovery phase. The message is stock market friendly, and thus may give Dow Jones a strong push to catch up with its Wall Street peers – the S&P 500 and Nasdaq, both of which have already set fresh record highs for a few consecutive sessions. Read more…..
Chart of the Day
Icarus TV
Federal Reserve Chairman Jerome Powell is expected to unveil broadly the Fed’s new strategy on inflation as the central bank’s annual economic symposium, known as Jackson Hole, gets underway virtually today.
