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Wall Street closes in green after Powell and with the Dow recovering what it lost in 2020

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Wall street does not stop climbing. The main US indices have closed in green again (Dow Jones + 0.57%, Nasdaq -0.23% and S&P 500 + 0.17%) and have extended their rises with a Dow Jones that has already recovered everything it lost this year. They have done it after the president of the Federal Reserve (Fed) has spoken, Jerome powell, at the symposium Jackson hole, which started this Thursday. In his speech he indicated his intention to keep interest rates low.

Without a doubt, the words of the head of the central bank have determined the direction that the negotiations have taken this Thursday, since before the bell, Wall Street was dyed red. Investors expected a lot from him, and Powell not disappointed in Jackson Hole, which is being held virtually for the first time due to the coronavirus pandemic.

The Fed Chairman has announced a new approach to monetary policy, focused on fostering job growth and allowing inflation to exceed the 2% target, which could help keep interest rates lower for longer. "It is contradictory to many that the Fed wants to boost inflation. However, inflation that is persistently too low can pose serious risks to the economy," he said.

The central bank has been trying for years to keep inflation at 2%, a rate that US monetary policy makers consider manageable and indicative of a healthy economy. However, since the financial crisis the data has almost always lagged the Fed's target. So Powell has decided to take a historic turn.

Everything has gone according to plan, and the Fed has announced new stimulus, so that the main indices have found in this the catalyst they needed to continue rising.

But Jackson Hole isn't the only thing on investors' radar this Thursday. At the macroeconomic level, the revision of the data for the Second quarter GDP, finally contracted 31.7%, and not 32.9% as had been initially estimated. On the other, the weekly data on unemployment claims, than has fallen by 98,000 to 1 million.

On the other side of the Atlantic, doubts have also taken hold of the European stock markets, which have closed with falls like the stock markets of Asia and the Pacific.

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