Friday turned out to be a good day for the S&P 500 as a result of investors taking in a mixed job report and Federal Reserve Chairman Jerome Powell’s sustained guarantee that the central bank is prepared to provide assistance for the economic expansion. The index experienced a 0.1% rise and is up 1.8% for the week. 

In the month of August, job growth in the United States experienced a slowdown and retail hiring also dwindled for seven months straight. However, this factor is deflected by the secure wage gains to provide support for consumer spending and help the economy continue its expansion, even though there is a growing risk from the current trade disputes.

During an event in Switzerland, Fed Chairman Powell stated that the economy is currently in  good condition and does not have the potential to go into a recession. These comments came after U.S President Donald Trump’s tweets called for greater rate cuts at the meeting of the central bank’s Federal Open Market Committee occurring on September 17-18. As of now, the Fed is anticipated to implement a quarter percentage point cut to its federal funds rate. Nevertheless, despite Powell commenting that he is not seeing a recession approaching, he mentioned that the economy is experiencing major threats and the central bank intends to move adequately to support a continuous expansion.

By: Ctril Latrice Cajanding