© Reuters. By Peter Nurse
Investing.com – US equities will open for a larger higher on Friday, as recent strong gains continue with investors reversing Federal Reserve head Jerome Powell’s policy change.
At 7:25 ET (1125 GMT), trading 11 points, or 0.3%, higher, the contract took 123 points, or 0.4%, while not performing well, after trading in principle flat.
The closed Thursday was 0.6% higher, at its highest level since February 21, the index gained 0.2%, but the index lost 0.3%.
The DJIA is at its highest level since February 21, the S&P 500 has its best week in two months, while both the S&P and the Nasdaq are on course for their fifth straight positive week.
Powell on Thursday unveiled the Fed, saying the central bank would adopt an “average inflation” target that could push inflation above its 2% target.
“The message was clear that the Fed could stay above target for a while before acting on it, which is a more double tilt towards monetary policy than before,” analysts at Nordea said in a research note.
The Federal Reserve’s favorite inflation measure, excluding food and energy, is scheduled for 8:30 AM ET (1230 GMT).
The core PCE price index is seen as rising 0.5%, with an annual rate of 1.2% for July, compared to 0.9% in the previous month – still nowhere near the key 2.0% level.
Meanwhile, fresh stimulus from U.S. policymakers seems as far away as ever, as House Speaker Nancy Pelosi said Thursday that Democrats and the White House are in a “tragic impasse” after a brief phone call with White House Chief of Staff Mark Meadows.
Oil prices were largely unchanged Friday, with Hurricane Laura declining in force after blowing through Louisiana and Texas, the heart of the U.S. oil sector, without causing major damage to refineries.
This week has generally been a positive for the market, with US stocks declining as demand held. The WTI contract is on track for a weekly gain of 1.5%, a fourth straight week of gain, while 1.6% is seen.
futures traded 0.2% higher at $ 43.14 a barrel, while international benchmark Brent contract rose 0.1% to $ 45.66.
Elsewhere, it rose 1.7% to $ 1,965.70 / oz, while 0.1% traded higher at 1.1908.
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