Fed Meeting Minutes: Market Believes U.S. Economy Still Resilient

BlockBeats News, August 21st: The Federal Reserve released the minutes of its July meeting, which mentioned that the recent stock price increases and narrowing credit spreads indicate that the market believes the overall U.S. economy remains resilient. However, the financial markets appear to have started to differentiate among firms based on the scale and quality of their earnings.

The valuation of the S&P 500 index continues to be above its long-term average level, primarily due to the market's optimistic expectations of the potential benefits to large technology companies from further applications of artificial intelligence (AI). However, although the valuation of the small-cap stock index has risen during the intermeeting period, it remains below the historical average level. (FXStreet)