Wall Street Likes Fed Inflation Targeting

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Wall Street likes Fed inflation targeting. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures hold steady as Wall Street awaits speech from Fed’s Powell

Futures contracts tied to the major U.S. stock indexes held steady at the start of the overnight session Wednesday evening as Wall Street turned its attention to an upcoming address from Federal Reserve Chairman Jerome Powell. Dow futures lost 6 points at the start of extended trading, pointing to a muted move when regular equity trading resumes Thursday morning.

The S&P 500 (SPY) rose +0.17% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Gains ranged from +1.69% to less than 1%. Losses ranged from -1.22% to less than 1%, check the sector graph for specifics.

The Dow Jones index added +160 points (+0.57%) to close at 28,492. The Nasdaq declined -39 points (-0.34%) to settle at 11,625.

 

Wall Street Likes Fed Inflation Targeting

Stocks finished mostly higher Thursday as Fed Chairman Jerome Powell unveiled new policy framework toward inflation targeting.

Stocks got a boost to start the session after Fed Chairman Jerome Powell said the central bank formally agreed to a policy of “average inflation targeting.” In other words, the central bank will let inflation run “moderately” above its 2% goal for “some time.” Powell also hinted that unemployment data can stay lower for longer before the Fed starts thinking about raising rates.

Big Tech shares fell across the board. Facebook and Netflix dropped 3.5% and 3.9%, respectively. Amazon, Alphabet and Apple were all down more than 0.9%. Microsoft bucked the negative trend in tech, rising nearly 2.5%.

Fresh Unemployment Data

Investors pored through fresh economic data to gauge the health of the economy. The Labor Department said Wednesday the number of Americans who filed for unemployment benefits for the first time totaled 1 million last week, in line with expectations. It marked the second consecutive week that weekly jobless claims tallied more than 1 million.

Key Takeaways…

Powell on how the Fed decided to shift to ‘average inflation targeting’ policy

The Federal Reserve announced a major policy shift Thursday, saying it is willing to allow inflation to run hotter than normal in order to support the labor market and broader economy. Federal Reserve Chairman Jerome Powell explains the central bank’s decision to make the change.

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

8/27/20

S&P 500 Sector Graph

Wall Street Likes Fed Inflation Targeting

S&P 500 (SPY)

Wall Street Likes Fed Inflation Targeting

Communication Services (XLC)

Wall Street Likes Fed Inflation Targeting

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Discretionary (XLY)

Wall Street Likes Fed Inflation Targeting

Consumer Staples (XLP)

Wall Street Likes Fed Inflation Targeting

Energy (XLE)

Wall Street Likes Fed Inflation Targeting

Financials (XLF)

Wall Street Likes Fed Inflation Targeting

Real Estate (XLRE)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Wall Street Likes Fed Inflation Targeting

Episode 3: 6 Investing Rules for Individual Investors – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *