On the eve, several former representatives of the US Federal Reserve began to say that the target inflation rate could be increased from 2% to 3%. In this case the Fed will not need to quickly raise the interest rate to combat high inflation. It is not clear yet whether this is a private opinion or this option is being discussed now in the FOMC.

But the American stock market liked this scenario and investors began to actively buy up shares, which allowed the S&P500 and DJI30 indices to renew their historical maximums. In my opinion, the stock market will continue to rise until Thursday, August 26, when the annual economic symposium is held in Jackson Hole.

Trading recommendation: Buy 109.10/108.85 and take profit 109.85.