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Dow rises 322 points for two-day win streak ahead of Federal Reserve speech

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Investors are awaiting Powell's remarks at the annual symposium Friday as they seek insight into the central bank's future policy moves. File Photo by Tasos Katopodis/UPI | <a href="/News_Photos/lp/a06a884dccf0c2116229cbb96155be6e/" target="_blank">License Photo</a>

Investors are awaiting Powell’s remarks at the annual symposium Friday as they seek insight into the central bank’s future policy moves. File Photo by Tasos Katopodis/UPI | License Photo

Aug. 25 (UPI) — U.S. markets rose for a second consecutive day Thursday as investors anticipated Federal Reserve Chair Jerome Powell‘s speech at the annual Jackson Hole symposium.

The Dow Jones Industrial Average rose 322.55 points, or 0.98%, the S&P 500 rose 1.41% and the Nasdaq Composite closed the day up 1.67%.

Investors have been closely watching the Jackson Hole symposium for insight into how swiftly and severely the central bank plans to hike interest rates at its next policy meetings, with Powell’s Friday remarks drawing the most attention.

“The broad expectation is for Jerome Powell to continue his narrative on fighting inflation while dissuading markets from the notion that the Fed has made a dovish pivot,” David Norris, partner and head of U.S. credit at TwentyFour Asset Management said in a note.

“Markets are anticipating a more hawkish statement from Powell along the lines of a ‘higher for longer’ narrative on interest rates,” Norris said.

Thursday also saw the release of key economic activity including the Bureau of Economic Analysis reported that economic activity contracted less than initially estimated in the second quarter.

The estimate of second-quarter gross domestic product showed the economy contracted at a 0.6% annualized rate, less than 0.9% reported last month.

Additionally, the Labor Department reported that initial jobless claims decreased with 243,000 people filing for unemployment insurance last week, down from 250,000 the prior week.

Shares of Peloton plummeted 18.32% after it reported an operating loss of more than $1 billion for its fiscal fourth quarter, giving up gains from Wednesday that saw the company’s stock surge 20.36% as it announced a deal to sell its fitness equipment and apparel on Amazon.

Salesforce stock fell 3.5% after the cloud software company cut its outlook for annual revenue and profit, citing a stronger dollar and reduced spending from consumers.

Nvidia stock ended the day up 4.01%, reversing losses from earlier in the session as the chipmaker reported that it missed quarterly earnings expectations.

All three major indexes were still on track for a losing week despite the two-day win streak, following a three-day long losing skid to start the week.

The Dow remained down 1.23% for the week, while the S&P 500 has fallen 0.69% and the Nasdaq has declined 0.52%.

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