Jerome Powell’s Comments Power The Wall Street Greatly

On Friday, there was an advance observed on the Wall Street as Jerome Powell, Federal Reserve chair had some upbeat remarks and the stimulus package from Chinese economy helped the investors in shrugging off a jobs report of the United States which had turned out to be weaker than what was anticipated.

The week began with the markets trying to recover from the jitters in trade and manufacturing data in the United States which was negative but the news of resumption of trade talks between China and United States and the geopolitical developments which were positive and came from Hong Kong, Britain and Italy saw that the market participants had now been put in risk-on mood.

There was a lift in that mood by the central bank of China which has said that since there was a need to strengthen the weakening economy of the country it would be lowering the amount of cash that must be held by banks as cash reserves which would result in the additional liquidity of 900 billion yuan.

Experts have been saying that the direction of the market for the next few months will be directly determined by the headlines whether geopolitical or macroeconomic until October when there will be company data which will be coming out again.

The appetite for risk was restricted when the non-farm payrolls report made by the US had showed that there was an increase in 130,000 jobs in the month of August which was way below the expectations of the analysts.

There was a sign of the economic expansion by the United States coming to an end after the longest period of expansion and also provided signs that there will be a rate cut by the Federal Reserve in the coming days.

George Morris
As Head of editing, George brings to the table over a decade of experience in Industry Research and Internet Marketing. His dedication, perseverance, and passion for perfection have enabled him to achieve immense success in his field. George is an expert at delivering precise, engaging and detailed updates from around the world. His interests lie in writing news articles on newly launched Technologies, Software Products & Social Media happenings.

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