Financial expert analyzes: Stock market rally and investor sentiment changed before Powell speech

Financial expert analyzes: Stock market rally and investor sentiment changed before Powell speech

According to a report by finanzmarktwelt.de, the mood of (private) investors in the USA has suddenly changed: now they are more bullish than they have been since the beginning of August, and the bears are now only a small minority (but the rally stopped at the beginning of August). This sudden change in mood can be considered a contra-indicator? The question now is whether the Nasdaq, which has been up for nine days in a row and the US leading index S&P 500, which has been up for eight days in a row, can rise even further. Yesterday, however, more stocks fell than rose again, with Big Tech once again the savior of the US indices. Fed Chairman Powell is likely to comment on the economy and, above all, monetary policy today differently than yesterday - will he question the extremely dovish interpretation of his statements last week?

The development of the stock markets continues to be of great importance as they strongly influence the mood and behavior of investors. The current positive developments and the prospect of a possible monetary policy reassessment by Fed Chairman Powell could lead to further price increases. However, the dubious interpretation of Powell's latest statements causes uncertainty. In addition, commentators point to the end of globalization between China and the US, as well as dramatic price declines in the real estate sector, which could also have an impact on financial markets.

Overall, it is important to keep a close eye on developments on the stock markets and carefully analyze possible consequences for the financial industry. The upcoming speech by Fed Chairman Powell is likely to cause further price movements and influence uncertainty on the market. It is therefore advisable to continue to act cautiously and monitor the current situation closely in order to be able to react quickly to changes.