After a winning streak of three days Dow finished low last week after falling by 173 points.
This drop has come after a week or so of turbulent trade.
Dow ended 0.7% down, while S&P 500 has fallen by 0.8% and the NASDAQ composite had declined by 0.7%.
With the news of trade war, recession and economic stimulus which is abating for now, investors now have their eyes set on Jerome Powell who is the chairman of Federal Reserve and his speech on Friday at Jackson Hole, as people expect him to come up with something that will boost markets again.
Powell’s speech will be watched closely by investors on Friday for the signs more cuts in interest rates and how he assess the U.S. economy.
Rate cuts in September for are expected to be at 100% with a chance of quarter percentage cut of up to 95 % which will be up from a figure of 90% at the beginning of the day. These high expectations suggest that another with a rate cut already being expected stocks could be rallying if Powell on Friday sounds dovish.
On Monday, Donald Trump, President of United states had tweeted on Monday that there will a cut of at least one percentage point. Trump on Tuesday has told reporters that central bank needs to be proactive.
Before Powell will take stage, Randal Quarles who is the Vice Chairman will be giving a speech after the markets close on Tuesday. The minutes of the meeting in July, where the Central Bank had cut rates by quarter percentage points will come out this Wednesday. The rate cut of this magnitude had happened for the first time since the year 2018.
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