Stock market today: Wall Street climbs ahead of speech by Fed chief Powell
By Yuri Kageyama And Matt Ott, The Associated Press on August 23, 2024.
NEW YORK (AP) – Stocks are climbing on Wall Street, but the market’s focus is thousands of miles to the west, where the head of the Federal Reserve is about to give a highly anticipated speech about interest rates. The S&P 500 was 0.6% higher Friday, less than a half hour before Fed Chair Jerome Powell is due to speak at a conference in Wyoming. The Dow Jones Industrial Average was up 173 points, and the Nasdaq composite was up 0.7%. Treasury yields were holding steady. They’ve pulled back sharply since April on expectations the Fed is about to start cutting its main interest rate for the first time since 2020. THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. Wall Street pointed higher Friday ahead of a speech by Federal Reserve Chair Jerome Powell that may deliver clues on how quickly and deeply the Fed intends to cut interest rates. Futures for the Dow Jones Industrial Average rose 0.4% before the bell, while futures for the S&P 500 climbed 0.6% as markets steer toward another winning week. Markets have posted strong gains the past two weeks, even though the U.S. economy has been slowing under the weight of high interest rates meant to get inflation under control. Recent data shows a steadily cooling labor market and a swiftly contracting manufacturing sector. The Fed has pulled its main interest rate up to the highest level in more than two decades. With inflation slowing, the wide expectation is for the Federal Reserve to cut interest rates at its next meeting in September, which would be the first easing since the COVID-19 pandemic crash of 2020. That’s why so much attention is on Jackson Hole, Wyoming, where Powell will speak Friday at an economic symposium that’s been the site of big Fed policy announcements in the past. U.S. companies continue to report mostly better-than-expected profits for the spring. Workday rose 15% after the human resources software company beat Wall Street’s sales and profit targets and issued a strong forecast. Ross Stores, the discount home decor and clothing retailer, climbed 5.6% after it easily beat analysts’ second-quarter projections as inflation-weary consumers continue to seek out bargains. Nestle shares gained after the company’s board appointed Laurent Freixe as chief executive officer, replacing Mark Schneider. The global food giant’s shares rose 3.4% in premarket. In Europe at midday, France’s CAC 40 rose 0.4%, while Germany’s DAX gained 0.6%. Britain’s FTSE 100 added 0.3%. Earlier in Asia, Japan’s benchmark Nikkei 225 rose 0.4% to finish at 38,364.27. Australia’s S&P/ASX 200 slipped less than 0.1% to 8,023.90. South Korea’s Kospi edged down 0.2% to 2,701.69. Hong Kong’s Hang Seng slipped nearly 0.2% to 17,612.10, while the Shanghai Composite gained 0.2% to 2,854.37. Japan’s plans for interest rates were also closely watched. Bank of Japan Gov. Kazuo Ueda in his comments to parliament appeared to indicate more increases may be coming, but they would be gradual. The Bank of Japan was closely monitoring the recent gyrations in stock prices and currencies but saw recent wage increases as a positive sign, he said. Japan’s economy was dragged down for years by deflation, a gradual decline in prices that reflects a stagnant economy. The bank ended negative interest rates in March and then raised rates in July. “We stuck to a very loose monetary policy until March. The point was our commitment to that until it’s confirmed the economy is on track to realize a gradual, stable rise in prices that’s sustainable,” Ueda told lawmakers. In energy trading, benchmark U.S. crude rose $1.29 to $74.30 a barrel. Brent crude, the international standard, rose $1.21 to $78.43 a barrel. In currency trading, the U.S. dollar fell to 145.95 yen from 146.24 yen. The euro cost $1.1120, up from $1.1115. ___ 21-20
