Wall Street Surges on Dovish Fed Hints at Jackson Hole
U.S. markets rallied as Jerome Powell hinted at possible interest-rate cuts during his Jackson Hole speech. Powell emphasized the forthcoming jobs and inflation data's role in the Fed's decision. The Dow Jones hit a record high, and the S&P 500 ended a five-day losing streak.
Wall Street experienced a significant rally on Friday after U.S. Federal Reserve Chair Jerome Powell suggested the possibility of an interest-rate cut during his speech at the Jackson Hole Symposium. This potential cut, likely discussed at the Fed's September meeting, sent ripples through the financial markets.
Powell highlighted that the decision would depend on the jobs and inflation data at that time. His remarks led traders to increase bets on a rate cut, with nearly 90% now expecting a reduction, compared to 75% before his comments. The Dow Jones soared 902.75 points, its highest ever, while the S&P 500 and Nasdaq also saw substantial gains.
The rally occurred amid sector-wide gains, with the Nasdaq facing marginal weekly declines despite overall jumps in some indices. Drivers of the rally included resilient earnings reports, optimism over trade deals, and growing anticipation of rate cuts. Meanwhile, notable stocks like Tesla rose significantly, while Intuit and Workday faced declines.
(With inputs from agencies.)
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