August has been a volatile month for stocks as investors try to anticipate the Federal Reserve’s next move on interest rates. That’s why all eyes are on Jackson Hole, Wyoming, this week. On Friday, August 22, Fed Chair Jerome Powell will deliver a speech that often signals longer-term shifts in monetary policy.
With markets already pricing in a 25-basis-point cut in September, Powell’s tone is likely to spark short-term volatility. More importantly, the direction Powell signals could determine which sectors lead the market higher, and which lag behind.
