S&P 500 outlook after Powell’s remarks at Jackson Hole symposium

S&P 500 is back in red at the time of writing after Fed Chair Jerome Powell said that a further increase in interest rates was still on the table.

Powell’s remarks at the Jackson Hole symposium

Powell did agree at the Jackson Hole symposium today that inflation has come down sharply from its peak last year – but emphasized more on the fact that it’s still well above his 2.0% target.

We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.

Chair Powell acknowledged that there was a risk of doing too much as well but refrained from even signalling that he’s so much as considering cutting rates any time soon.

The benchmark index is now down about 5.0% versus its year-to-date high.

Art Cashin reacts to Chair Powell’s speech

On the S&P 500, the level to watch after Powell’s remarks at the Jackson Hole symposium is 4,400, as per Art Cashin – the Director of Floor Operations at UBS.

Speaking with CNBC on “Squawk on the Street”, he also recommended keeping a close eye on the 10-year Yield that went up to as high as 4.28% on Friday.

Market is being cautious. I would watch if it gets resistance in getting above the 4,400 level. But If I have only one instrument to look at it, it’ll be the 10-year Yield. That will dictate where things are going.

Note that consumers prices in the U.S. were up 3.2% last month (read more) versus 3.0% in June.