US stocks trading cautiously after record-setting S&P, Nasdaq jump Friday
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U.S. equity futures are searching for direction ahead of the Monday's session on Wall Street.
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On Wall Street Friday, the S&P 500 rose 39.37, or 0.9%, to 4,509.37, topping its prior all-time high set on Wednesday. The Dow Jones Industrial Average climbed 242.68 points, or 0.7%, to 34,455.80, and the Nasdaq composite gained 183.69, or 1.2%, to 15,129.50.
A speech by Fed Chair Jerome Powell on the economy in Jackson Hole, Wyoming was believed to be a key factor behind the market surge. U.S. stocks have set record after record this year, in large part because of the Fed's massive efforts to prop up the economy and financial markets. The gains had been getting increasingly tentative as markets began to look toward a possible end of the Fed’s assistance.
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Last week, Powell noted past mistakes where policy makers made premature moves in the face of seemingly high inflation. He made clear a slowing of the Fed's bond purchases doesn't mean a rise in short-term rates is imminent. That would require the job market and inflation to hurdle "substantially more stringent" tests.
"We have much ground to cover to reach maximum employment," Powell said.