Stocks steady as Powell testifies

Stocks steady as Powell testifies

After falling for the last 4 sessions, U.S. indices today steadied the ship, as markets were once again in the green as traders appeared to be buying the dip.

This came as Fed Chair Jerome Powell testified before the Houses’ Financial Services Committee. Powell stated that the economy has recently shown “marked improvement” as it attempts to battle its way out of a COVID-19 led rescission. However, warned that the path ahead remains highly uncertain and the Federal Reserve may be forced to do more.

As of writing, the Dow Jones had gained 0.56%, while the S&P 500 was up almost 1%, and the NASDAQ gained 1.73%. Amazon was a big mover, climbing 5.16%.

U.S. home sales near 14 year highs

U.S. home sales climbed to their highest level since 2006 last month as the housing market continued to bounce back.

The report which was released by the National Association of Realtors said that existing home sales had increased by 2.4% to an annual rate of 6 million units in August, which is the highest level in 14 years, December 2006 to be precise.

An uptake in workers being asked to work from home is said to be one of the main contributing factors. This has helped the housing market to remain resilient despite nearly 30 million people claiming unemployment benefits. 

UK’s Boris Johnson sets new COVID-19 guidelines

In an attempt to help contain the recent upswing in coronavirus infections, Boris Johnson today gave a speech to parliament outlining his new plans for the UK.

One of the headline moves will be that all pubs, bars, restaurants and other hospitality venues in England will be expected to close at 10PM, starting on Thursday. The move comes as the UK has recorded close to over 4,926 new COVID-19 cases; government figures have shown this to be the highest daily total since early May.

The FTSE 100 was surprisingly up on the news, as markets seemed to have already priced in today’s announcements. However, GBP fell to its lowest level since late July against USD.

Quote of the day – “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.”

Peter Lynch

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Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com