Stock Exchange: Powell Announces Rate Cuts, But Europe Remains Cautious

The European stock markets opened slightly lower this Monday. Investors remain cautious ahead of the release of numerous key economic indicators this week, despite the statements of Jerome Powell, chairman of the Fed, at the Jackson Hole symposium.

Ouverture Paris : le CAC 40 se rapproche des 7.600 pointshttps://t.co/w4SALdMptR#bourse #finance $PX1

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Powell paves the way for a rate cut

The speech by Jerome Powell has been widely analyzed by stock market players. The Fed chairman clearly indicated that the American central bank was ready to act to support the economy.

Although inflation remains a concern, the central bank now seems to place greater importance on the risk of a recession. This orientation has strengthened expectations of an interest rate cut as early as September.

Stock market investors are watching for the next indicators

Stock market investors remain calm. They prefer to wait for the release of several key economic indicators that could impact central banks’ monetary policy decisions.

In the United States, stock market players are closely watching:

• durable goods data,
• the second estimate of GDP,
• the personal consumption expenditure (PCE) price index.

In Europe, inflation for the month of July will also be a key factor in assessing the effectiveness of the European Central Bank’s monetary policy.

Nvidia: a key stock market indicator for the technology sector

As every quarter, Nvidia’s results are also highly anticipated by stock market investors. They provide an idea of the health of the entire technology industry.

• If Nvidia’s figures are good, it will be a good sign for other companies in this sector.
• If the results are disappointing, it could lead to a drop in the stock prices of technology companies, impacting the stock markets in general.

Stock market investors are therefore facing many uncertainties. The coming days will be decisive!