In the US, indices rose on the third trading day of the week, with the developments regarding the coronavirus vaccine and the statements of Fed members, with the rise of companies sensitive to the economy. The S&P 500 index and the Nasdaq index closed the day with a record. The S&P 500 index broke a record 51 times this year.
Markets are focused on the Jackson Hole meeting, which will take place this week. Messages that will come to the fore at the symposium may have an impact on pricing in the market. At the end of the session, the Dow Jones index increased by 0.11 percent to 35405, S&P 500 index increased by 0.22 percent to 4496, and the Nasdaq index increased by 0.15 percent to 15041.
The dollar index in forex markets is watching with mild buyers today. The 10-year Treasury bond yield was at 1.35 percent at the close of the session. Index futures, on the other hand, are trading with sellers. 4434 level is followed as support and 4497 level as resistance in S&P 500 index.
Durable goods orders in the US fell 0.1 percent in July, below estimates.
The effects of Corona continue.
On August 25, 170,722 cases of coronavirus were detected across the United States. The average number of coronavirus cases detected in the last 7 days was approximately 152,341. The average case detection in the last 7 days has increased by 23 percent compared to 14 days ago. Approximately 202 million people in the country have received at least one dose of the coronavirus vaccine, and approximately 172 million people have received two doses.
The U.S. Food and Drug Administration (FDA) announced that it has given full approval to the Pfizer-BioNTech vaccine against the coronavirus for those aged 16 and over. With the announcement, US indices started to rise again. President Joe Biden reminded that the US Food and Drug Administration has fully approved the use of the Pfizer-Biontech coronavirus vaccine, and invited private companies to impose a vaccination obligation on their employees.
The US House of Representatives approved US President Joe Biden’s $3.5 trillion budget plan, which is an important part of the economic agenda. Biden, at the press conference, expressed his satisfaction with the decision of the House of Representatives and said that they are one step closer to investing in the American people. The $3.5 trillion budget plan, which is the second phase of Biden’s economic plan, includes investments in social security programs and climate policy.
Jackson Hole Meeting
The Kansas City branch of the Fed announced that the Jackson Hole meeting, which will take place on August 27, will be held virtually due to the coronavirus outbreak. The Jackson Hole meeting, which takes place in August every year, is a symposium followed closely by the markets because of the changes in monetary policies. Fed Chairman Powell is expected to deliver a speech at the symposium on Friday.
Powell’s rhetoric about reducing asset purchases will be followed closely. Dallas Fed President Robert Kaplan said on Friday that his thoughts on reducing asset purchases could change due to the increase in the number of coronavirus cases. However, it is thought that Fed executives may change their expression.
7 of the 11 sectors with S&P 500 companies gained value. While the financials sector was the biggest gainer of the day, the health services sector was the most depreciated of the day. Today, VMware, Workday, and Dell Technologies will announce balance sheets.
SEE ALSO: What are the Financial Markets?Share this article