“Given we just got a significant update from Fed Chair Powell at the annual Jackson Hole Symposium, the upcoming meeting should garner much less fanfare than usual,” RBC Capital Markets economists wrote in a note Friday. “Most of what Powell touched on at Jackson Hole was very forward-guidance driven. So we will hear about 1) more willingness to let inflation run above 2% (the inflation averaging provisions) and 2) letting the unemployment rate drift well below the natural rate in the future (the de-linking of employment and inflation that Powell promoted).” “From our lens the recent tweaks are merely a concretization of an already active process,” they added.
The three major indices each closed more than 1% higher, and the Nasdaq rose for the first time in three sessions as tech stocks shook off last week’s jitters. Apple (AAPL) shares gained 3% and added to gains in late trading, paring some declines after losing 4.5% over the two sessions prior. The company is set to hold a virtual product launch event Tuesday morning, which is expected to focus on the Apple Watch. Information technology was the second best-performing sector in the S&P 500 on Monday, closely following the real estate sector.