These are important events that could affect trading

These are important events that could affect trading

There are some important events that take place on Wednesday that could affect trading.

The investors are waiting for more commentary from the Federal Reserve Chairman Jerome Powell when he testifies before Congress on Wednesday and Thursday. The June print for consumer inflation expectations is expected to be released on Friday, and investors and policymakers are eager to see it happen. Powell said that the preliminary reading of 5.4% was eye-catching at the news conference last week. After a selloff that has dragged the S&P 500 down 21% this year, investors and analysts say they expect more pain ahead in the markets, but some are still willing to wade in and buy stocks at a discount. Many pointed to Tuesday's recovery as a rebound from last week's drawdown.

INFLATION PREDICTIONS: Government leaders and officials have tried to assuade an increasingly jittery nation that an economic slowdown isn't guaranteed. President Biden said on Monday he spoke with Lawrence Summers, a former Treasury secretary, and said he doesn't see a recession as inevitable. The Federal Reserve Bank of St. Louis President James Bullard said the economy appears to be on track for more expansion this year. Many market watchers are bracing for an economic downturn. A team of Goldman Sachs economists increased their outlook for a U.S. recession citing concerns that the Fed will feel compelled to respond forcefully to inflation data, even if economic activity slows. The team believes that there will be a 30% chance of entering a recession over the next year, compared to 15% previously, and a 25% chance of entering a recession in the second year if one is avoided in the first.

MILDLY SENSITIVE U.S. STOCKS GAIN: U.S. stocks rallied Tuesday off their worst week since March 2020, giving investors a reprieve from the recent stretch of whipsaw trading that had sent stocks andcryptocurrencies falling. The S&P 500 gained 89.95 points, or 2.4%, to 3764.79. The Dow Jones Industrial Average went up 641.47, or 2.1%, to 30530.25. The Nasdaq Composite Index jumped by 270.95 points, or 2.5%, to 11069.30. The U.S stock market was closed Monday for the Juneteenth federal holiday.

After a bruising weekend, the price of cryptocurrencies rose as well, continuing to claw back some losses. It was about 18% higher than the previous low of $17,601. According to CoinDesk, 58 reached Saturday.

HOME PRICES: The average price of an existing home went up more than 16% from a year ago to a record $407,600 in May. The housing industry is being hammered by a combination of record-high prices and soaring mortgage rates, with sales of existing homes falling for the fourth month in a row to 5.41 million annualized, the slowest pace since June 2020.