Global Stock Markets Pause Amid Fed Speculations
Global stocks stagnated after a prolonged rally as investors awaited guidance from the Federal Reserve on potential interest-rate cuts. With Fed Chair Jerome Powell expected to speak at the Jackson Hole conference, market participants are eager to see if further loosening of credit conditions is on the horizon.
![Global Stock Markets Pause Amid Fed Speculations](https://devdiscourse.blob.core.windows.net/aiimagegallery/31_05_2024_08_21_48_8147509.png)
Global stocks took a breather on Wednesday following a robust rally, as investors awaited potential interest-rate cuts from the Federal Reserve. Fed Chair Jerome Powell is set to speak on Friday at the Jackson Hole conference in Wyoming, where he is anticipated to discuss the likelihood of easing credit conditions after addressing the worst inflation in 40 years.
In the U.S., oil prices declined during early afternoon trading, and dollar weakness sustained gold prices near Tuesday's record highs. On Wall Street, the Dow Jones Industrial Average remained stable at 40,858, the S&P 500 climbed 0.28% to 5,612, and the Nasdaq Composite advanced 0.3% to 17,871.
Investors are speculating a 'soft landing' scenario for the U.S. economy, bolstered by anticipated rate cuts starting in September. While concerns about a recession persist, the bets on lowered borrowing costs may lead to a buoyant equity market.
(With inputs from agencies.)
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