“The STO Jones Industrial Average stock index increased by 900 points, reaching a record level after Powell's speech caused a bull market on the market” – reports CNBC.
This index grew by 12 percent during the year, in three years – by 38 percent, and five years – by over 60 percent.
Dow Jones gains about 2 percent on Friday Similarly, the NASDAQ technology index, and the S&P 500 quotations grow about 1.6 percent.
CNBC mentions examples of specific companies that clearly gain value. These are Nvidia (1.3 percent), as well as Meta, Alphabet and Amazon, whose shares gained over 2 percent. Added to this is a 5 % increase in Tesla's listing Elon Musk.
Expectations regarding the likelihood of interest rate reduction by 0.25 percentage points In September, they increased rapidly to about 91 percent. Compared to about 75 percent at the beginning of the week.
“The bar is now very high suspended” – said Chris Zaccarelli, investment director at Northlight Asset Management, quoted by CNBC.” It is not a surprise that the markets have reacted with joy, both on the stock market and bonds. “
The dollar reacts to the words of Jerome Powell in Jackson Hole
Also on the currency market is happening. As Reuters reports, The dollar index, which measures the value of the American currency in relation to the currency basket, including yen and euro, fell by 0.89 percent. to level 97.73, after Powell was about 98.7 before the statement.
The euro gained 0.97 percent, and the exchange rate increased to $ 1.1717. In Poland, the dollar costs PLN 3.63, and before Powell's speech, the course was 2 grosze higher.
Karl Schamotta, the main market strategist at Corpay, Toronto, told the agency that Powell's message was much more pigeons than the markets expected. “The dollar drops rapidlythe probability of reduction of interest rates in September is growing, and market participants are clearly preparing for further loosening of monetary policy, “he said.
