Just a few carefully chosen, yet hardly definitive words from US Federal Reserve chair Jerome Powell was enough to snap a five-day losing streak on Wall Street and add more than a trillion dollars to the value of global markets.
Speaking at the annual Jackson Hole central bank gabfest in Wyoming, Mr Powell said the Fed may “adjust its policy stance” and immediately buy orders hit trading screens in a blaze of green.
The blue-chip Dow gained 1.9% to beat its previous record close from way back in December last year.
After five days of losses, the S&P 500 jumped 1.5% and the tech-centric Nasdaq also rebounded, gaining 1.9%.
The rate sensitive small cap Russell 2000 surged more than 4% to its highest level this year.
Wall Street indices response to Powell comments (LSEG, Reuters)
Friday night futures trading on the ASX 200 points to a 0.9% rise this morning.
Mr Powell’s comments have been…
