S&P 500, Nasdaq notch records | Fed’s Powell soothes markets | How to play the bond taper

Investors breathed a sigh of relief after Federal Reserve Chair Jerome Powell signaled bond tapering could start this year but, the central bank is in no rush to raise interest rates. 

VIEW IN BROWSER | SUBSCRIBE FRI, AUG 27, 2021 EVENING BRIEF AS OF FRI, AUG 27, 2021 • 05:00 ET DJIA 35455.80 +0.69% +242.68 S&P 500 4509.37 +0.88% +39.37 NASDAQ 15129.50 +1.23% +183.69   Most Active DOW NAME LAST CHG %CHG AAPL 148.60 +1.06 +0.72% MSFT 299.72 +0.63 +0.21% INTC 53.89 +0.76 +1.43% S&P 500 NAME LAST CHG %CHG AMD 111.40 +4.13 +3.85% F 13.31 +0.41 +3.18% AAPL 148.60 +1.06 +0.72% NASDAQ NAME LAST CHG %CHG AMD 111.40 +4.13 +3.85% AAPL 148.60 +1.06 +0.72% PTON 104.34 -9.75 -8.55%   EDITOR'S NOTE Investors breathed a sigh of relief after Federal Reserve Chair Jerome Powell signaled bond tapering could start this year, but the central bank is in no rush to raise interest rates.    The Fed chief said inflation is solidly around the central bank's 2% target rate, one of the goals of the Fed's dual mandate, but it has "much ground to cover" to reach its other goal of maximum employment. He made clear that rate hikes would not immediately follow.   The S&P 500 and the Nasdaq Composite hit all-time highs after Powell's speech and closed at record levels. The Dow Jones Industrial Average gained 242.68 points to close at 35,455.80.  "Powell spends the bulk of the speech pushing back on inflation concerns, suggesting the Fed is not nearly as nervous about prices as some in the market (and Washington) are," said Adam Crisafulli, founder of Vital Knowledge. "Powell pushes back on rate liftoff worries, telling markets that the threshold for rate hikes is much higher than tapering."   The Fed chairman also devoted an extensive passage in the speech to explaining why he continues to think the current inflation rise is transitory and will eventually drop to the target level.   Based on statements from other Fed officials, a tapering announcement could come as soon as the Fed's Sept. 21-22 meeting.   With Jackson Hole behind us, investors are now shifting their focus on August's jobs report. Economists polled by Dow Jones expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%. Yun Li | CNBC Markets and Investing Reporter @YunLi626 TOP NEWS  Major averages finish the week higher after Powell prepares markets for Fed's bond taper this year 'Another terror attack in Kabul is likely,' national security chiefs warn Biden Powell sees taper by the end of the year, but says there's 'much ground to cover' before rate hikes Biden says U.S. health officials are considering Covid booster shots at 5 months, moving up timeline of third shot Key inflation gauge rises 3.6% from a year ago to tie biggest jump since the early 1990s When consumer confidence is as low as it is now, it's typically time to buy consumer stocks Powell's benign view on inflation is getting pushback at the Fed, and elsewhere National eviction ban has been struck down. What renters need to know SEC steps up research into brokers' 'gamification' of trades, Chair Gary Gensler says Judge blocks Florida governor's order banning mask mandates   TOP VIDEO These overlooked, 'Fed-proof' August losers could be due for a bounce   CNBC PRO These stocks were big winners during the last Fed taper and analysts love them now   SPECIAL REPORTS These tax credits could boost refunds for low-income families this year How Blue Origin, SpaceX, Virgin Galactic space race could impact the atmosphere   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS