Wall Street Surges: Dow Hits Record Amid Fed Rate-Cut Hints
Wall Street's major indexes surged on Friday after Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut. The Dow closed at a record high, with investors optimistic about potential policy changes. This follows a recent rebound from trade tension-induced losses.
In a significant market rally on Friday, Wall Street saw its major indexes climb higher, spurred by hints from Federal Reserve Chair Jerome Powell about an impending interest rate cut. The blue-chip Dow Jones Industrial Average closed at a historic high as investors eagerly absorbed the potential monetary policy change.
Powell's remarks, delivered during the Jackson Hole Symposium, suggested the Federal Reserve could cut rates at its next meeting, boosting trader confidence and increasing the likelihood of a rate cut to nearly 90%. This sentiment shift helped the S&P 500 gain 96.73 points, while the Nasdaq Composite rose by 396.22 points.
The rally was fueled by strong gains in the semiconductor sector and megacap growth stocks, with Tesla leading the charge. Despite recent hardships due to trade tensions, the market's rebound has been buoyed by resilient earnings and optimism over trade agreements and monetary policy adjustments.
(With inputs from agencies.)
Google News