The Stock Market saw little change today due to confidence concerns surrounding Federal Reserve's oncoming actions amidst recession warning signs. Under a divided Fed, it is unclear which way Chairman Jerome Powell will sway in his speech he is set to deliver Friday, August 23, at the Central Bank's annual Jackson Hole symposium at 10 a.m. ET.
Many investors are concerned that the Fed will not lower interest rates fast enough to alleviate recession risk. Sam Stovall, Chief Investment Strategist at CFRA, a financial institution, states that officials for the Federal Reserve are saying, "We don't see any reason to lower rates in September'...I think the Fed is trying to shake the bushes and see how would the market react if they did not cut rates at all." Whether the Federal Reserve moves forward with cutting interest rates or holds back to see how the market moves, Friday's decision will have great impact on the market for the coming months.
Despite market fears, Nordstrom
U.S. manufacturing sector activity unexpectedly contracted as August is coming to a close. The U.S. manufacturing purchasing managers' index (PMI) fell to 49.9, according to IHS Markit's advance reading. This break below a neutral level that is set to 50 indicates negative new business growth.
Tomorrow we will see the outcome of Powell's address to central bankers and economists on how the Federal reserve will move forward with interest rate cuts and how that will affect market growth as 2019 enters its closing months.
