Cross-currents in the market. U.S. stock indices closed August with respectable gains, propelled once again by Nvidia and the AI narrative (although even as I write, the market is giving back a portion of that after the release of PCE data - more on this later).
At the same time, tariffs re-emerged as a live issue, and the Fed found itself juggling market expectations with political pressure.
The Fed’s Pivot at Jackson Hole
For much of the year, the market has been anticipating when, and if, the Fed would begin to cut interest rates. The most significant event of the month was Fed Chair Jerome Powell’s speech at the annual Jackson Hole symposium. Powell's tone signaled a green light for a September rate cut, sending stocks and bonds rallying.
At the same time, tariffs re-emerged as a live issue, and the Fed found itself juggling market expectations with political pressure.
The Fed’s Pivot at Jackson Hole
For much of the year, the market has been anticipating when, and if, the Fed would begin to cut interest rates. The most significant event of the month was Fed Chair Jerome Powell’s speech at the annual Jackson Hole symposium. Powell's tone signaled a green light for a September rate cut, sending stocks and bonds rallying.
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