US stocks end mixed after Fed’s new approach to inflation

14

New York, Aug 28 | Wall Street’s major averages closed mixed as investors pored through the US Federal Reserve’s new policy strategy on inflation and a slew of key economic data.

On Thursday, the Dow Jones Industrial Average rose 160.35 points, or 0.57 per cent, to 28,492.27. The S&P 500 increased 5.82 points, or 0.17 per cent, to 3,484.55. The Nasdaq Composite Index fell 39.72 points, or 0.34 per cent, to 11,625.34, Xinhua news agency reported.

Eight of the 11 primary S&P 500 sectors climbed, with financials and real estate up 1.7 per cent and 1.4 per cent, respectively, outpacing the rest. Communication services dipped 1.3 per cent, the worst-performing group.

Meanwhile, US-listed Chinese companies traded mostly lower, with eight of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

Fed Chairman Jerome Powell announced on Thursday that the central bank will seek to achieve inflation that averages 2 per cent over time, a new strategy for carrying out monetary policy to help fight the COVID-19 pandemic and boost economic recovery.

“Therefore, following periods when inflation has been running below 2 per cent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 per cent for some time,” Powell said in remarks to the Kansas City Fed’s annual Jackson Hole research conference, which is held virtually this year because of the pandemic.

“This is a subtle change, made because the old way of conducting policy did not work,” Chris Low, chief economist at FHN Financial, said in a note on Thursday, adding the move indicated “the era of preemptive monetary policy is over.”

On the data front, the US economy contracted at an annual rate of 31.7 per cent in the second quarter amid mounting COVID-19 fallout, the US Commerce Department reported Thursday.

Moreover, US initial jobless claims, a rough way to measure layoffs, came in at 1 million in the week ending August 22, following claims of 1.1 million in the prior week, said the Department of Labor. The reading was roughly in line with market expectations.

Source: IANS

Sponsors Posts

Global Strategist and Philanthropist Drummi Bhatt returns to her homeland to bring about a vernacular infotainment content revolution

Global Strategist and Philanthropist Drummi Bhatt returns to her homeland to bring about a vernacular infotainment content revolution

Drummi Bhatt has successfully donned many hats including that of a global strategy professional, mentor, and investor to early-stage startups encouraging women entrepreneurship, and a philanthropist.

Drummi currently leads Market Intelligence and Strategy team at Mitsubishi Power, USA building corporate-level strategies for global markets. Drummi is also the founder of KarmaKonnect, a Woman and Rural Empowerment Non-Profit Organisation which works for projects in remote rural, tribal, and conflict areas.

Her philanthropy work has taken her to various corners of India, including, far end corners of Leh, Ladakh, Telangana, and remote areas of Chambal. During these visits, she got mesmerized by culturally rich, vernacular, and diverse, the true “Bharat”.

During her interaction across the country, she got enchanted by the whirlwind of talent residing across Bharat, which is not restricted to a language, city, or just tier-1 cities but is found in abundance all across tier-2, tier-3 cities, and rural-tribal clusters.

With OTT platforms ruling the world in 2020, Drummi decided to bring her strategic insights and data analytics strength to this field by joining hands with seasoned entrepreneurs, Rahul Narvekar and Narendra Firodia, to launch its kind, vernacular OTT platform, Letsflix.

In 2019, Drummi, Rahul, and Narendra have successfully launched India’s first vernacular infotainment app, LetsUp, which now caters to 1.5 million users and in 7 vernacular languages, a feat achieved by none. The trio has now been passionately working towards creating and delivering vernacular content for every viewer in India with Letsflix.

LEAVE A REPLY

Please enter your comment!
Please enter your name here