Stocks are little changed as investors await Powell speech

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Stocks open little changed as investors await Powell speech

The S&P 500 traded near flat Wednesday as Wall Street awaits an afternoon speech on the economy from Federal Reserve Chair Jerome Powell.

Investors are waiting for Powell's speech at the Brookings Institution this afternoon that may give further insight into the central bank's thinking on future interest rate increases. The Fed is slated to meet later this month and is largely expected to deliver a smaller 0.5 percentage point rate hike after four consecutive 0.75 percentage point increases to tame high inflation. Any signal of a pivot on future rate hikes would likely send markets higher.

"Powell is likely to hint that the [Federal Open Market Committee] will slow the pace of rate hikes at the December meeting but push back against the recent easing in financial conditions with two hawkish counterpoints," Goldman economist Ronnie Walker wrote. "Netflix's successful launch of Wednesday … screens as an incremental positive against rather underwhelming viewership for The Crown and perceived viewership competition from [the] World Cup," Keybanc Capital Markets analyst Justin Patterson said.

 

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What difference did that make. Markets were already inflated on the back of what was expected. So why the sudden panic and waiting game. Load of crap!

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