SP 500: Wall Street pullback while waiting for Jackson Hole

Wall Street secures profits while waiting for Jackson Hole

Wall Street ended a four-week rally last week amid a rebound in long rates and renewed caution ahead of the Jackson Hole symposium where Fed Chairman Jerome Powell will speak and may toughen his stance. tone given the improvement in financial conditions in recent weeks.

The renewed caution was most seen in “meme stocks” which fell sharply on Friday after soaring in recent weeks. Bed Bath & Beyond plunged following news of RC Ventures’ sale of Ryan Cohen’s stake in BBBY and a Bloomberg Law report suggesting the company has hired Kirkland & Ellis to help resolve the issues problems related to the indebtedness of the company.

The renewed caution could also be seen through the sector performance of the S&P 500. The defensive sectors of Utilities (-0.1%), Consumer Staples (-0.4%) and Healthcare ( +0.3%) outperformed, with the first two even being the only ones to end the week up, alongside the energy sector.

Wall Street already started to pull back at the end of last week, but could continue while waiting for the Jackson Hole symposium which will begin on Friday. In the meantime, traders will have their eyes glued to the economic releases, in particular August flash PMIs (Tuesday), ECB Minutes (Thursday) and core PCE index (Friday).

S&P 500 daily price chart – key levels


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