Crypto, stocks climb higher, while Jackson hole centimeters approaches
Crypto, stocks climb higher, while Jackson hole centimeters approaches
- The markets were able to recover from their latest burglaries before Jerome Powell's speech on Friday
- The market is buried about what the result of the Federal Open Market Committee in September
The latest decline in the markets made a certain relief on Wednesday, since both stock and crypto retailers speculate about what the central bankers could take with them after the Jackson Hole Symposium this week.
stocks were able to stay in the green during the trading session on Wednesday, with the S&P 500 ticked up to 0.8 % higher and the Nasdaq added 1 %. After three days of rejection it was a welcome, albeit minor breathing space.
The leading crypto-assets Bitcoin and Ether also rose by 1.2 % and 0.8 % from 2:00 p.m. ET, whereby Fed chairman Jerome Powell will be present in Jackson Hole in two days.
"We are at a turning point for the mega-cap trading, since hedge funds adapt to a further weakness of the bonds and a much weaker consumer because the economy slowed down," said Edward Moya, Senior Market Analyst at Oanda.
"Today's recovery is low and of a small volume, which means that most dealers wait for the symposium speech by the Fed chairman Powell in Jackson Hole."
"Fed Funds Futures and Treasuries say [Powell’s] The speech by Jackson Hole will be false, with the commitment to several further interest increases and no recognizable reference to a" Pivot "in the first half of 2023," said Nicholas Colas, co -founder of Datatrek Research.
"In a VIX of 24 US shares may not yet fully accept this eventuality."
The futures markets show a probability of 58.5 % for an interest rate increase by 75 basis points at the next political meeting in September Data from the CME group. There is a probability of 41.5 % for an increase of 50 basis points.
Even if the markets are fairly evenly divided between 50 and 75 basis, economists do not expect that the rising interest rates will stop in September.
Dan Morehead, CEO and Chief Investment Officer at Pantera Capital, assumes that the Fed find interest rates will reach at least 4 % or 5 % before the central bank changes its strategy.
"You cannot tame the outdated inflation with Fed finds that are 600 basis points below the inflation," wrote Morehead in a note on Wednesday. "The FED will be forced to tighten much more than the markets are currently predicted."
. .
The contribution Crypto, Stocks Edge Higher As Jackson Hole Inches Closer is not a financial advice.