Investors may be underestimating the degree of potential market turbulence stemming from the Federal Reserve's economic symposium at Jackson Hole, Wyoming, potentially leaving them more vulnerable to a hawkish surprise, options strategists said.
With many investors sitting on big year-to-date gains in stocks and bond yields pushing higher, investors may be caught flat-footed if a hawkish Powell spurs a run out of risky assets, Steve Sosnick, chief strategist at Interactive Brokers, said
Barring the market drop last year and a 2019 tumble, Fed chairs' Jackson Hole speeches have not been big market movers in recent years, with the S&P 500 logging an average swing of 0.9% on the day of the address over the last decade. This year's symposium also comes at a time when various asset classes have become more vulnerable to outsized moves following the Jackson Hole event, according to an analysis by derivatives strategists at Barclays.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jackson Hole: Markets Expect a Hawkish PowellMarket Overview Analysis by Edgar Ochoa covering: United States 10-Year, 10-2 Year Treasury Yield Spread, United States 10-Year TIPS. Read Edgar Ochoa's latest article on Investing.com
Read more »
10-year Treasury yield falls as traders look ahead to Powell's Jackson Hole speechU.S. Treasury yields were higher at the long end of the curve as investors assess the outlook for interest rates ahead of the Fed’s Jackson Hole symposium.
Read more »
Jackson Hole: 3 Major Reasons Why Fed Chair Powell Will Remain Hawkish This WeekMarket Overview Analysis by Investing.com (Jesse Cohen) covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Investing.com (Jesse Cohen)'s latest article on Investing.com
Read more »
Bearish crypto markets fear hawkish Powell at Jackson Hole: scenarios for BitcoinFederal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday has the potential to trigger volatility for Bitcoin pric
Read more »
Why this abstract concept could rattle stocks when Powell speaks at Jackson HoleInvestors and traders are looking for Federal Reserve Chairman Jerome Powell to address where he sees the neutral rate of interest during his speech on Friday.
Read more »
Jackson Hole Preview: Powell poised to keep markets on edge, three scenarios for the US Dollar'We're not in Kansas anymore' – this phrase from The Wizard of Oz reverberates across markets, which fear hawkish comments from the world's most power
Read more »