Jackson Hole in Focus: Powell’s speech seen as key signal

Hedge funds snapped up U.S. stocks at the fastest pace in seven weeks to August 15, as they positioned for a widely expected Federal Reserve rate cut in September, Goldman Sachs said in a client note.(Source: Reuters)

Markets are pricing in an 85% chance of a 25-basis-point Fed rate cut next month. Investors now look to Jerome Powell’s speech at Jackson Hole for more clarity on the outlook.

Speculators sold out of health care, consumer staples, and utilities—sectors considered safe havens during economic slowdowns. These saw the biggest selling in four months.

Utilities, often a proxy for interest rate trades, were heavily sold. Financial stocks were modestly net sold but recorded the highest gross trading activity since November 2024.

Hedge funds bought equities across all regions except Europe, suggesting a global tilt toward U.S. and other markets ahead of Fed policy shifts.

(Disclaimer: This slideshow has been sourced from Reuters)