Yield curve

Powell and committee emphasized conditions to taper their monthly asset purchases are near, but most importantly continued to disassociate those conditions from that of a rate hike.
Was yesterday’s strength the next step in the playbook, a rebound that sets course for new record highs? Or was the selling too orderly, leaving unfinished business?
In the U.S., we look to more news on the jobs front with JOLTs Job Openings for July due at 9:00 a.m. CT. Expectations are for the read to recede from June’s record of 10.07 million vacancies to 10.0 million.
Although there’s been a clear deviation from the ADP Payrolls read and the official Nonfarm data, markets will certainly be paying attention.
Expectations have mounted for Fed Chair Jerome Powell to more clearly, if not officially, communicate a timeline to begin tapering the Federal Reserve’s monthly asset purchases at his Jackson Hole speech on Friday.
Despite a powerful finish, there was little follow through overnight and all 4 major U.S. benchmarks are lower at the onset of U.S. hours with the Russell 2000 leading.
U.S. benchmarks again retreated at 3:00 a.m. CT. This time, it was on the heels of aggressive comments from China’s President Xi, who called for foreign countries to end their “bullying” of the communist nation.
The economic calendar culminates with Nonfarm Payroll on Friday. There’s a deluge of Manufacturing data from the U.S., Europe, and China leading into Friday. 
Value roared back yesterday: the Dow gained 1.83% to the S&P’s 1.45%. Better yet, the rally didn’t come at the expense of Growth stocks— the Nasdaq still gained 0.68% and every sector was positive. 
Market participants will dive into the policy statement and economic projections for any clues as to when the committee will begin thinking about tapering those purchases.