Wall Street relief. Dow Jones with a record

After Friday's speech of the chairman of the Federal Reserve, the financial markets could breathe a sigh of relief. Jerome Powell once again met Wall Street's expectations and suggested returning to interest rates.

– Stability of the unemployment rate and other labor market indicators allows us to carefully proceed when we are considering changes in our position – said the head of the Fed after opening the symposium in Jackson Hole. “Perspects to the base scenario and a sliding risk balance can justify the adaptation of our attitude in politics,” added Jerome Powell.

Therefore, these were not statements that would clearly indicate that at the September meeting of the FOMC there would be a resumption of a cycle of interest rates. But the term market increased the valuation of such a script from 75% to 85% – according to the Fedwatch Tool calculations. However, this is still less than 99%we saw after the publication of very weak July statistics from the labor market.

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– Fed – or at least Powell himself – is inclined to a more pigeon attitude to counteract the weakening of the labor market. This pigeon change coincides with the recent expectations of the market – the iPek Ozkardeskaya, a senior analyst at Swissquote Bank, quoted by the Reuters agency.

But the Wall Street reaction was as if Powell was just cutting his feet by at least 50 base points. Nasdaq went up by 1.88% and reached a height of 21,496.54 points. The S & P500 index, having gained 1.52%, registered at 6466.91 points, interrupting a series of five inheritance sessions in a row and returning near the August records of all time.

The unambiguous and undisputed record of all time was doped in the prey of the industrial Dow Jones, which went up by 1.89% and reached a height of 45 631.74 points. This is a new record closing course with an intra -session peak at 45757.65 points.

– Investors enjoy Powell's comments, as if it was the beginning of the foot reduction parade. But one cut will not start with a needle of consumer expenses. The main question is whether this is a real turn in the fed's policy and whether the raising of customs tariffs will not hit the brakes before this change begins at all – he did not hide the skepticism of Zak Stambor, a senior analyst at the emanketer.

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