Analysts expect Powell to announce the committee’s policy shift to Average Inflation Targeting. We discussed the concept earlier this week. It is as it sounds; inflation has run below the Fed’s 2% target for an extended period.
The Nasdaq-100 index closed at a fresh record yesterday, and the S&P 500 battled to settle positive, 1% off its overnight low. This sounds like a healthy session, but not for anything other than tech behemoths.
Yesterday, the S&P 500 index failed to tag its record high from February 19 by 2 points and began slipping after the release of the FOMC minutes. With the failed high under its belt, the Federal Reserve’s reluctance to implement yield curve control weighed on risk-assets broadly and strengthened the U.S. dollar.
After battling a very brief stint with volatility early yesterday, the S&P 500 index and Nasdaq-100 extended their ranges higher into the close. The S&P 500 finished one quarter of a point below its all-time closing high from February 19.
Home Depot’s 2nd quarter report early this morning reinvigorated a quiet overnight tape. The “do it yourself” narrative during the Covid-19 pandemic was a key driver for the company whose sales and profit surged by 23% and 25% from a year ago.