The S&P 500 experienced a late-day surge on Friday, carving out its sixth winning day in a row.
Not all investors were taking part in the rally, however. Low trading volumes indicate that many are waiting to see what unfolds later this month when Federal Chairman Ben Bernanke heads to the annual Fed retreat in Jackson Hole.
What can we expect?
Stephen Wood, of Russell Investments, says, “When you look at consumer data, when you look at GDP data, inflationary data, jobs data, housing data… it gives ammunition to those on the Federal Reserve who just want to stick where we are right now… And it also gives ammunition to the segments of the Federal Reserve who want to engage in more quantitative easing.”
In other words, more stimulus might – or might not – be on the way… Certainly not the definitive answer investors are waiting for.