In principle, the end of last week and the beginning of a new one were held under the auspices of Powell's speech on Friday. At first, the market was waiting for this speech, then reacted to it, then discussed and analyzed it. There is ongoing talk about what to expect from the Fed in September. There are only two options: an increase in the rate by 0.75% or an increase by 0.5%. From our point of view, the US dollar will receive market support in any case, and stock indices will continue to fall with further updating of their annual lows. For example, JPMorgan believes that in September, the rate will be increased by 0.75% for the third time in a row, after which the Fed will slowly begin to soften its monetary approach. The bank expects the Fed to take another aggressive step to combat inflation, after which it will begin to pay more attention to the balance between economic growth and the fight against high prices. But according to a Reuters poll, most economists expect a rate hike in September by only 0.5%. Only 18 out of 94 believe that the rate will increase by 0.75%. It should be noted that the next inflation report, which will be released just a week before the Fed meeting in September, will be of the greatest importance. If inflation shows a new powerful decline, the rate will likely increase by 0.5%. If not, the Fed may decide on another tightening of 0.75%. Therefore, it makes no sense to guess now. Jerome Powell said it is necessary to wait for statistical data.
Meanwhile, Forbs magazine estimated that in just half an hour after Powell's speech on Friday, America's richest people lost about $30 billion. Powell's speech lasted only 8 minutes, which became very difficult for US billionaires. After all, the US stock market has been recovering recently, but Powell's words about his readiness to maintain a "hawkish" attitude caused serious stock sales. So Elon Musk became $ 5.4 billion poorer in half an hour, and Jeff Bezos lost $ 6.5 billion. As you can see, the news about preserving the "hawkish" approach has brought the bears back to the stock market, so we are waiting for the indices and stocks to fall again.
Also, note that Tesla shares fell in price last week from $ 900 to $ 284. There is no need to panic, as there was a so-called "splitting" of shares when one security turned out to be as many as three. The same procedure was carried out at Amazon. The splitting of shares is done so that the issuer can increase the number of its shares and their price while maintaining capitalization. Many experts note that such a step is being taken to increase the shares' availability for investors.