US equities (^GSPC, ^DJI, ^IXIC) rose after Federal Reserve Chair Jerome Powell signaled that an interest rate cut is probable for September, sending further optimism in the market.
eToro US investment analyst Bret Kenwell joins Wealth! to give insight into the broader market landscape as optimism for an interest rate cut increases.
Kenwell thinks Powell "delivered exactly what investors we’re hoping for."
Kenwell believes the market long-term may be steady, but short-term could see some bumps in the road: "I think it would be reasonable if we saw some sort of mild pullback or a pause in the equity markets based on the idea that we came into August really abruptly. We had a big pop in volatility. Equity markets pulled back really hard into the low we saw on Monday August 5. Since then, we’ve had a really, really big rally. The S&P is back within 1% of its highs. It’s up 10% in less than three weeks. That’s a that’s a very robust move. So it would make sense if we had a little bit of a consolidation period."
To listed to Fed Chair Powell’s remarks from Jackson Hole, Wyoming, please visit:
https://youtube.com/live/-zHVXm15mW
#youtube #NEWS #stockmarket
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