Wall Street Surges as Powell Hints at Rate Cut
Wall Street saw significant gains with the Dow hitting a record high after Fed Chair Jerome Powell hinted at a possible interest-rate cut, fueling investor optimism. The S&P 500 snapped a five-day losing streak amid a tech selloff, driven by positive market sentiment and trade deal hopes.
The major indexes on Wall Street ended the week on a high note, with the Dow Jones Industrial Average closing at a record high. This rally came as investors responded positively to hints from U.S. Federal Reserve Chair Jerome Powell that an interest-rate cut could be imminent.
Speaking at the Jackson Hole Symposium, Powell suggested the possibility of a rate cut at the Fed's upcoming September meeting, contingent on forthcoming jobs and inflation data. This propelled investor confidence, with traders now betting heavily on the likelihood of a September rate reduction.
Consequently, the Dow surged by over 846 points, while the S&P 500 and Nasdaq also posted significant gains. The rally was broad-based, with consumer discretionary and semiconductor stocks performing particularly well. The potential policy shift by the Fed, alongside hopes for trade deal progress, fueled the optimistic sentiment.
(With inputs from agencies.)
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