US stocks showed gains on Friday as global volatility spiked and buyers reappeared.
To be more specific, all major groups in the S&P 500 rose by 0.8%, while NYSE FANG giants such as Apple and Facebook halted a five-day decline.
Earlier, the market was shaken by predictions that global economic recovery will slow as soon as central banks announce a cut on support measures. Dallas Fed President Robert Kaplan even said that he is willing to change his mind on early tapering if the Delta variant persists and hurts economic progress.
This just shows that investors prefer safer assets in the face of increasing risks to the economy. Their actions also indicate that they rely on political support when investing.
But while investors are understandably concerned about potential cuts, UBS Managing Director Rod von Lipsey said the Fed is unlikely to take action until the number of COVID-19 cases drops to early summer levels.
Now, investors are eagerly awaiting the Jackson Hole symposium on August 26-28, which may provide clues on the Fed's plans. The theme of this year's event is "Macroeconomic Policy in an Uneven Economy".
