Business Maverick: Stocks Pare Gains in Countdown to Jackson Hole: Markets Wrap

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Stocks pared gains, with data painting a mixed picture of the economy and traders awaiting a key speech by Federal Reserve Chair Jerome Powell on Friday.

The S&P 500 cut its advance by about half in another session of below-average volume. The Nasdaq 100 outperformed major benchmarks amid a rally in marquee names like Apple Inc. and Amazon.com Inc., though Tesla Inc. whipsawed as its stock split took effect. The dollar fell, while Treasury 10-year yields remained near 3.1%.in the first half of 2022, data showed Thursday, underpinning further debate on the health of the economy.

Kansas City Fed President Esther George joined the chorus of hawkish policy makers in the run-up to Jackson Hole, telling Bloomberg TV the central bank’s benchmark may have to riseto defeat inflation. The message has eroded a bounce in stocks and bonds from mid-June troughs. The tension in markets is whether those assets will continue to head back toward the lows of the year.

“Powell is likely to push back on premature expectations of a dovish pivot, reiterating the focus on the fight against high inflation,” said Silvia Dall’Angelo, a senior economist at Federated Hermes Ltd. “Whether markets take him seriously amid an increasingly gloomy outlook for the global economy is yet to be seen.”with a further 1 trillion yuan of measures.

Crude oil held around $95 a barrel, with elevated energy prices feeding into renewed jitters about whether price pressures have peaked.

 

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