Stocks Jumped at Open after Powell Unveiled Inflation Target

U.S. stocks jumped at opened on Thursday, as Federal Reserve Chairman Jerome Powell unveiled a new framework of thinking for the central bank. The Dow Jones Industrial Average lately rose 78 points, or 0.55%, to 28,487.68. The S&P 500 added 5.17 points, or 0.15%, to 3,483.90. The Nasdaq Composite was down 18.34 points, or 0.16%, to 11,646.72.

Oil futures traded slightly lower Thursday, shrugging off one of the strongest hurricanes in years as it made landfall near the heart of the refining industry, after forcing the shutdown of much of the Gulf of Mexico’s oil and gas production. West Texas Intermediate crude for October delivery was down 30 cents, or 0.7%, at $43.09 a barrel. October Brent crude declined 27 cents, or 0.6%, to $45.89 a barrel.

Federal Reserve Chairman Jerome Powell unveiled a new framework of thinking for the central bank that will tolerate inflation “moderately” above its 2% target. The Fed also committed to reviewing this policy every five years.

Another 1 million Americans filed for first-time unemployment insurance benefits last week. Initial jobless claims last week ended Aug. 22 was 1.006 million vs. 1.000 million expected and vs. 1.104 million during the prior week.