Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow Jones Futures Rise 123 Pts; Powell Helps Optimism

Stock Markets Aug 28, 2020 07:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are set to open largely higher Friday, continuing recent strong gains with investors digesting Federal Reserve head Jerome Powell’s policy shift.

At 7:25 AM ET (1125 GMT), S&P 500 Futures traded 11 points, or 0.3%, higher, the Dow Futures contract rose 123 points, or 0.4%, while Nasdaq 100 Futures underperformed, after trading basically flat. 

The Dow Jones Industrial Average closed Thursday 0.6% higher, at its highest level since Feb. 21, the S&P 500 index gained 0.2%, but the Nasdaq Composite index lost 0.3%. 

The DJIA is at its highest level since Feb. 21, the S&P 500 is having its best week in two months, while both the S&P and the Nasdaq are on course for their fifth straight positive week.

Powell unveiled Thursday the long-awaited update on the Fed's framework, saying that the central bank will adopt an “average inflation” target that could allow inflation to run above its 2% target.

“The message was clear that the Fed will allow inflation to be above the target for some time before acting on it, i.e. a more dovish tilt to monetary policy than previously,” said analysts at Nordea, in a research note.

The Federal Reserve’s favorite inflation gauge, personal consumption expenditures excluding food and energy, is scheduled at 8:30 AM ET (1230 GMT).

The core PCE price index is seen posting a rise of 0.5%, with an annual rate of 1.2% for July, compared with 0.9% in the previous month - still nowhere near the key 2.0% level.

Meanwhile, fresh stimulus from U.S. policymakers seems as far away as ever, as House Speaker Nancy Pelosi said Thursday that the Democrats and the White House are at a “tragic impasse” after a brief phone call with White House chief of staff Mark Meadows. 

Oil prices were largely unchanged Friday, with Hurricane Laura reducing in strength after blowing through Louisiana and Texas, the heart of the U.S. oil industry, without causing major damage to refineries.

This week has generally been a positive one for the market, with U.S. stockpiles being reduced as demand held up. The WTI contract is on track for a weekly gain of 1.5%, a fourth straight week of gains, while Brent is seen up 1.6%. 

U.S. crude futures traded 0.2% higher at $43.14 a barrel, while the international benchmark Brent contract rose 0.1% to $45.66. 

Elsewhere, gold futures rose 1.7% to $1,965.70/oz, while EUR/USD traded 0.1% higher at 1.1908.

Dow Jones Futures Rise 123 Pts; Powell Helps Optimism
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Ronald Warren
Ronald Warren Aug 28, 2020 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Vix has been bought all week!! "Wait For It. "
Victor Cuello
Victor Cuello Aug 28, 2020 8:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed declares they'll "allow" for higher inflation just as the "all-saving" stimulus 2.0 gets stuck in the House... good policy, manipulation, or coincidence? I guess I just don't enough to determine that. But something feels off for sure!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email