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U.S. stocks are rising as investors await key economic reports

Published 08/27/2023, 09:28 PM
Updated 08/28/2023, 11:20 AM
© Reuters

Investing.com - U.S. stocks were rising to start the last week of August as investors continued to digest Friday's speech by Federal Reserve Chair Jerome Powell and await a slate of key economic reports.

At 11:10 ET (15:10 GMT), the Dow Jones Industrial Average was up 159 points or 0.5%, while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.4%.

In a highly anticipated speech at an annual economic symposium in Jackson Hole, Wyo., on Friday, Powell argued in favor of keeping interest rates steady for now. But he noted that "further tightening" could be warranted if the economy does not slow enough to help cool inflation.

Gauging the path of inflation

The statements highlighted how carefully Powell and other Fed officials are trying to adjust the levers of monetary policy to corral price gains without causing a meltdown in the wider economy.

There is an 80% chance that the Fed will maintain borrowing costs at a range of 5.25% to 5.50% at its next meeting in September, according to Investing.com's Fed Rate Monitor Tool. Meanwhile, the probability of a quarter-point hike at its November gathering stands at just under 50%, moving up from about 35% last week.

The Fed will have a chance to gauge the path of inflation when its preferred measure of price growth, the personal consumption expenditure index, is released on Thursday. 

Economic data this week

Policymakers will also be parsing through the nonfarm payrolls report for August, which is due out on Friday. Economists estimate that the U.S. will have added 170,000 jobs during the month, down from 187,000 in July, while the unemployment rate is seen staying unchanged at 3.5%. Such a reading could indicate that the Fed's rate hikes are weighing on employer demand even as the overall labor market remains tight. 

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In individual stocks, 3M (NYSE:MMM) shares were up 3.8%. The Minnesota-based industrial conglomerate is reportedly nearing a settlement worth $5.5 billion to resolve hundreds of thousands of claims alleging that its earplugs sold to the U.S. military were defective.

According to multiple media reports, sources close to the matter say that the negotiations are ongoing and a final amount has yet to be finalized. The potential settlement was first reported by Bloomberg.

Scott Kanowsky and Oliver Gray contributed to this report.

Latest comments

Total pile of manure. Spread it on the fields.
Ah yes, savvy "investors" predictably "load up" on the most grossly overvalued stocks in history as they "wait."  BIGGEST INVESTMENT JOKE IN THE WORLD.
As Joe Biden's new Secretary of Stocks, I just want to say that as a proud member of the LGBTQIA+ community, I am happy to share that the economy is now coming out as trans. The market is doing terrible but identifies as doing great. If you do not buy more stocks then you are transphobic.
Amazing how the NASDAQ is staying afloat with the 2YR yield over 5%.
In the 1990s, the 2 yr yield was, for the most part, above 5%, too.  That didn't top the dotcom pump.
bidenomics? More like bradaplonker
* didn't stop
gambling underway........
The oil and gas industry seems to be holding 4 Aces....cutting back on rigs, calling the Fed's bluff.
seems like the beginning of a cautious shift from tech into value stocks
QQQ outperformed SPY today
Relax, guys. It's just sucker's rally.
"Don't Believe the Fed" has been working fabulously! I personally hope it continues so that rates can go higher without any pain to the markets.
Just a rally that's been going on since for more than a century.
Eagerly paying more for less is actually the very essence of inflation.
The fraud continues unchecked.  Where's the SEC?  Greatest financial FRAUD in history.
Why do stocks never go down waiting for key data? Its a controlled rigged game ain't it?
Of course it is. Wall St. runs the most perfected scam in the history of human civilization. They have every advantage, every time. It's a complete joke. I'd love to see retail investors stop dumping their money into this ponzi scheme, but the myths persist, mainly because of propaganda paid for by the cretins of Wall St. because they do love buying buying buying. Worse than a housewife with an AmEx black card. I'd like to see these people actually work a day for once. Also, how well would they do if they didn't have algos trading for them? Probably way worse. Cheating at every turn. Totally rigged, totally pointless. That's our system!
 The government raised the credit line on that black card. No tough love anywhere in sight.  Up up up ;)
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