Stocks Drop, Dollar Climbs Amid Economic Angst: Markets Wrap
(Bloomberg) — Stocks dropped, while the dollar rose amid concern that the global economic recovery will lose momentum with further shutdowns to contain a fast-spreading pandemic.
Traders watched closely Federal Reserve Chair Jerome Powell’s remarks during a Tuesday town hall with educators and students, where he noted that the Fed’s “powerful tools” have limitations. Powell also said that Covid-19 will likely stay “for a while,” and we’re not going back to a pre-pandemic economy. Policy makers will gather next week for the Jackson Hole symposium, the central bank’s most-prominent annual conference.
“We’re essentially in a bit of a holding period ahead of Jackson Hole,” wrote Craig Erlam, senior market analyst at Oanda Europe. “While there is a fair amount of data releases this week, some of which may carry a little more weight than others, it’s all about the…