S&P 500 drops from highs, before recovering as Powell tries to ease inflation fears
The S&P 500 fell from Tuesday’s record highs as Federal Reserve chair Jerome Powell said that the Fed was not close to altering its monetary policy stance.
Despite recent growth in the U.S. employment market, Powell stated that “Conditions in the labour market have continued to improve, but there is still a long way to go”.
In his address to the House Financial Services Committee, the Fed Chair also stated that inflation could continue to rise, however it would even out, once temporary factors fade.
Gold rose to its highest level in the last 4-weeks on the news, with several U.S. indices trading lower.
However, as of writing, earlier losses have cooled off, with the S&P 500 now trading 0.21% higher.
FTSE 100 slips as inflation, COVID-19 cases rise
Britain’s FTSE 100 was trading lower in today’s session, as data released showed that COVID-19 cases were at their highest since January.
Figures on Wednesday showed that a further 42,302 cases of the coronavirus were reported in the last 24-hours, with 49 deaths associated with to the virus.
As the British economy began to re-open, cases climbed, in particular of the Delta Variant which is said to stem from India.
News of this comes as it was also reported that the country’s inflation rate in June rose above the Bank of England‘s target.
The CPI came in at 2.5% last month, which is its highest since August 2018 and helped send the FTSE 100 0.47% lower on Wednesday.
Apple stock rises on “buy-now-pay-later” reports
Apple shares were trading higher on Wednesday as it was reported that the company was considering entering the “buy-now-pay-later” space.
This sector, which has been recently popularized through European based Klarna, has risen in adoption as shoppers look to offset payments for goods.
It is said that the new feature will enable Apple Pay users to purchase goods through four interest-free instalments, made every 2-weeks.
This comes just as another company entered the market, with PayPal launching its a similar service in Australia, and stated that it would do away with late fees, in a bid to entice users.
As of writing, shares in $APPL were up 2.36%
Quote of the day – “I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have”– Paul Tudor Jones