Wall Street’s three main indexes ended sharply higher on Friday after Federal Reserve Chair Jerome Powell signaled the U.S. central bank would continue to keep its ultra-loose monetary policy for now. Before this, investors were nervous because several Fed officials warned it is nearly time for the central bank to begin pulling back on its monetary support, but Jerome Powell’s speech calmed fears over the tapering timetable and sent investors into the weekend in a buying mood.
“The market is very happy that the Fed is pumping more liquidity into the economy every month. The Fed is enabling asset prices to climb, and the market is pleased with that,” said Mike Zigmont, head of research and trading at Harvest Volatility Management in New York.
The S&P and the Nasdaq advanced to record closing highs on Friday while the Dow Jones Industrial Average rose 242.68 points, or 0.69%, and closed at 35,455.8 points. The U.S. will publish the Nonfarm Payrolls report on Friday, and this will be one of the main events of next week. The U.S. economy is expected to have added 665K new jobs in August, while the unemployment rate is also expected to show improvements.
S&P 500 up 1.52% on a weekly basis
For the week, S&P 500 (SPX) booked a 1.52% increase and closed at 4,509 points, which represents a record closing high.
S&P 500 continues to trade in a bull market, but if the price falls below 4,400 points, it would be a “sell” signal, and we have the open way to 4,200 points.
DJIA up 0.96% on a weekly basis
The Dow Jones Industrial Average (DJIA) advanced 0.96% for the week and closed at 35,455 points.
The Dow Jones Industrial Average continues to trade near record highs, and if the price jumps above 36,000 points, it would be a bullish confirmation for this index. On the other side, if the price falls below 34,000 points, it would be a firm “sell” signal, and the next target could be around 33,500 points.
Nasdaq Composite up 2.82% on a weekly basis
For the week, the Nasdaq Composite (COMP) booked a 2.82% increase and closed at 15,129 points, representing a record closing high.
As long the price is above this trend line and 14,500 points, this index remains in a bull market. If the price jumps above 15,200 points, the next target could be around 15,300 or even 15,500 points.
Wall Street’s three main indexes ended sharply higher on Friday as Jerome Powell’s speech boosted demand for high-yielding assets and confirmed the U.S. Federal Reserve’s stance of maintaining an ultra-loose monetary policy for now. The U.S. will publish the Nonfarm Payrolls report on Friday, and this will be one of the main events of next week.
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