The much anticipated Fed Jackson Hole speech deliberately invoked “pain” that caused 3.94% selloff in the NASDAQ. The Fed didn’t like the stock market rally prior to the speech, therefore the Jackson Hole speech was designed to take down the stock market forcefully. The 8-minute short and succinct statements from the Fed Chair Powell did the job successfully.
Ever since the June 17 bottom, the market has made up its own mind. It didn’t matter what the hawkish Fed officials said about their resolves to fight inflation, the market plowed ahead as if everything is fine. The S&P 500 met its maker at 200-day moving average on August 16, 2022. The bulls were able to pierce through S&P 500 200-day moving average, but
The market rallied mindlessly post the July Fed meeting, which didn’t sit well with the Fed. The Fed would like the equities to stay at lower valuation to diminish the wealth effect associated with a richly valued stock market. The stock market is one of the major parts of the broad financial condition which the Fed is trying very hard to tighten. Quite a few Fed officials came out one
