Stocks Rise as Fed's Inflation Message Reassures Traders
The stock market edged higher on August 28 as investors digested policy signals from the Jackson Hole symposium. The S&P 500 rose 0.20% to 7,747, while the Nasdaq Composite gained 0.14% to 26,561 and the Dow Jones Industrial Average climbed 0.17% to 53,658.
Gold prices slipped 1.63% to $4,535.27, and the 10-Year Treasury yield rose 0.04% to 4.70%. Communication services stocks led sector gains, while industrials and healthcare stocks traded lower.
Elastic shares surged more than 18% after its quarterly earnings release, echoing yesterday's rally by Salesforce. Payment network Affirm Holdings also advanced this morning. However, semiconductor stocks came under pressure as Marvell Technology fell over 9%, despite beating analyst expectations, and Rubrik dropped 11%.
Federal Reserve Chairman Kevin Warsh emphasized his commitment to reducing inflation in a speech at Jackson Hole. Although he did not directly state that the Fed would raise rates, his clear message reassured traders that he would act if inflation remains sticky. Economists now believe there's an almost 60% chance of a rate hike in September.