Stocks rally as investors eye Fed's Jackson Hole event
Investor predicts Federal Reserve won’t issue major policy shift
Lane Generational founder and managing partner Fred Lane argues nothing ‘major’ will come from the Fed’s upcoming Jackson Hole meeting.
U.S. stock indexes snapped back Monday morning as investors looked ahead to a key Federal Reserve event that could lay out the framework for the central bank to begin tapering its asset purchases.
The Dow Jones Industrial Average rose over 200 points, or 0.57%, while the S&P 500 and the Nasdaq Composite advanced 0.81% and 0.58%, respectively.
|I:DJI||DOW JONES AVERAGES||35310.51||+190.43||+0.54%|
|I:COMP||NASDAQ COMPOSITE INDEX||14849.573468||+134.91||+0.92%|
Both the Dow and the S&P 500 are coming off their biggest weekly declines in two months after minutes from the most recent Federal Reserve meeting out last week showed the central bank could begin scaling back its asset purchase program before the end of the year.
HOUSING MARKET BLACK SWAN BUBBLING
The Fed’s Jackson Hole Symposium will take place virtually Thursday and Friday and could provide clues as to when the Fed could end the emergency measures put in place during the onset of the COVID-19 pandemic and begin raising interest rates.
In stocks, energy-linked names, including Chevron Corp, Kinder Morgan Inc. and Haliburton Co., outperformed as West Texas Intermediate crude oil jumped $2.53 to $64.67 a barrel.
|KMI||KINDER MORGAN, INC.||16.25||+0.32||+1.98%|
Uber Inc., Lyft Inc. and DoorDash Inc. were under pressure after a California judge ruled that Proposition 22, a voter-approved measure that classified drivers as independent contractors, was unconstitutional.
|UBER||UBER TECHNOLOGIES, INC.||40.07||+0.13||+0.33%|
PayPal Inc. announced customers in the U.K. will be allowed to buy, sell and hold the cryptocurrencies bitcoin, ether, litecoin, and bitcoin cash beginning this week. Separately, bitcoin rose to the $50,000 level, a three-month high.
|PYPL||PAYPAL HOLDINGS, INC.||277.20||+4.24||+1.55%|
In deals, Pfizer Inc. said it would buy the remaining shares of Trillium Therapeutics Inc. that it does not already own for $18.50 apiece, a 204% premium to Friday’s closing price. The agreement values the cancer drugmaker at $2.26 billion. Separately, the Food and Drug Administration granted full approval to Pfizer-BioNTech's COVID-19 vaccine.
In earnings, Chinese e-commerce company JD.com reported earnings and revenue that exceeded Wall Street estimates as the number of active customer accounts climbed by 27.4%.
|D||DOMINION ENERGY, INC.||79.30||-0.69||-0.86%|
Overseas markets rallied across the board.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
France’s CAC 40 paced the advance in Europe, trading up 0.87%, while Britain’s FTSE 100 and Germany’s DAX 30 advanced 0.27% and 0.12%, respectively.
In Asia, Japan’s Nikkei 225 rose 1.78%, China’s Shanghai Composite added 1.45% and Hong Kong’s Hang Seng index gained 1.05%.
Source: Read Full Article