Federal Reserve Chair Jerome Powell indicated interest rate cuts were on the horizon, bringing stocks back within striking distance of their all-time highs, which were set last month. Last week, the three major stock averages posted winning week - the Dow Jones surged nearly 1.3%, the Nasdaq added 1.4% and the S&P 500 rose 1.45%. On Friday, Jerome Powell signaled decreases to interest rates but did not provide any specifics on when or how big. Investors are breathing a sigh of relief and are hopeful that the Federal Reserve is heading towards monetary easing.
Economic reports from last week came back mixed:
•National Economic Activity (Chicago) - lower than expectation
•Existing Home Sales - higher than expectation
•New Home Sales - higher than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Confidence & Sentiment, Personal Income and Jobless Claims.
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