Fed inflation target sends markets higher
During today’s Jackson Hole Economic Symposium, the Federal Reserve laid out their aggressive new strategy to help restore the United States economy to pre-pandemic levels.
Under new guidance Jerome Powell stated that the Fed will seek to achieve average inflation of 2% over time.
As a result, The Dow was also positive today, gaining around 0.85%. The S&P 0.5% and briefly topped 3,500 for the first time.
Initial Jobless Claims remain over 1 million
After falling below the 1 million mark a week ago, initial jobless claims have once again hovered above this level for the second time running.
Claims for state unemployment dropped by close to 100,000, coming in at 1.006 million for the week which ended August 22nd.
This has now led speculators to believe that the economic recovery is starting to slow down. Further data also released today confirmed the US economy suffered its deepest contraction in at least 70 years in Q2, as a result of the coronavirus outbreak.
Walmart enters talks to acquire TikTok
Today it was reported that Walmart would be joining Microsoft in their bid to acquire Chinese tech company TikTok.
After being threatened with a ban by President Trump, TikTok moved to find potential suitors for its U.S. operations.
Further uncertainty also led the company to consider sales of its Canadian, Australian and New Zealand operations in a deal that’s likely to be one of the biggest tech acquisitions in recent years
Quote of the day: “It’s not whether you’re right or wrong that’s important, it’s how much moneyyou make when you’re right and how much you lose when you’re wrong.”George Soros
GBPJPY: GBPJPY continued its recent run of bull sessions climbing to as high as 140.85 today. The pair traded as low as 139.69 earlier in the day.
XAUUSD: After trading as high as $1,974 earlier in the day, Gold fell to a day’s low of $1,909 as news of the Fed’s new strategy moved market