Stocks Gain Ground, Fed Rate Cut Appears Closer

Expectations are growing that the Federal Reserve will cut its benchmark interest rates, given the agency's chairman's remarks. On Friday, there was some optimism, particularly evident on Wall Street.

At the Jackson Hole meeting, which brings together central bankers from around the world annually, Jerome Powell adopted a less hawkish/hardline stance. In this context, there is growing belief that the next meeting (scheduled for September 17th) will be marked by a decision to cut interest rates. This would represent a stimulus for the American and global economies, so the markets' interpretation was positive. This sentiment was particularly notable among the technology sector.

Among the main New York indexes, there were increases of 1.89% in the Dow Jones industrial, 1.88% in the Nasdaq technological and 1.52% in the S&P 500.

On the European continent, the main indexes recorded less significant gains, of 0.76% in Italy and 0.70% in Spain. This was followed by increases of 0.40% in France, 0.32% in Germany, and 0.09% in the United Kingdom, while the Euro Stoxx 50 aggregate index advanced 0.39%.

Even so, Lisbon ended the day with a loss. The PSI index fell 0.50% to 7,980 points in Friday's session. Millenium BCP fell 3.41%, with shares trading at €0.77, pushing the index into negative territory. Mota-Engil fell 2.72% to €5.19, Corticeira Amorim fell 2.49% to €7.83, and Jerónimo Martins fell 2.43% to €20.90.

On the other hand, EDP Renováveis ​​advanced 2.39% to 10.70 euros per share, while Navigator gained 2.22% to 3.41 euros and Altri added 2.16% to 5.21 euros.

Economic sentiment and the real estate market are the focus of attention

Germany will release the Ifo Business Climate Index for August in the eurozone's largest economy. Later, data on building permits and new home sales in July will be released in the US.