Not many bears left. New Wall Street Records Await Jackson Hole

The Dow Jones advanced 0.11% to 35,405.50 points on a day when it crossed 35,500 points, close to the absolute record on August 16 when it reached 35,631.19. The S&P 500 has already set new records, whether closed or intraday. The broad index rose 0.22% to 4496.29 points, and during the day it exceeded 4500 points for the first time, recording a new high at 4501.71 points.

The Nasdaq Composite also renewed the unprecedented levels of the previous day and added 0.15% more, ending the day at 15,041.86 points. Prior to that, the technology-dominant index reached 15,059.43 points.

In a quiet session ahead of the Federal Reserve’s Jackson Hole symposium, the money and energy sectors led the gains after surging Treasury yields and oil prices.

“There aren’t many bears left,” Erin Tunkel, chief US strategist at BCA Research, told Bloomberg. Reversals like the one last week are becoming “softer” as more and more people are buying from the fall.

“There is now a very strong buy-and-go mentality,” he said.

Good company results, advances in vaccination and federal incentives mitigated the impact of the increase in Covid cases associated with the delta variant.

But the pace at which the Fed plans to start tapering off the stimulus is still hanging over the markets. Federal Reserve Chairman Jerome Powell’s speech on Friday may give clearer indications about the strategy the Fed will pursue.

Fiona Cincotta, chief financial analyst at City Index quoted by Bloomberg, said investors were “jumping” on whether or not the Fed would announce the “taper taper” schedule. The consensus now is that the Fed will postpone the announcement lower due to the rise in virus cases in the US.