Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole economic symposium has sent shockwaves through the markets, with major US indexes surging to record highs on Friday. The Dow Jones Industrial Average closed up 846.24 points, or 1.89%, reaching a fresh high of 45,631.74 and surpassing its previous record close.
The S&P 500 rose 1.52% to end at 6,466.91, while the Nasdaq Composite gained 1.88%. Shares in megacap technology stocks surged on Powell’s comments, with Nvidia adding 1.7%, Meta Platforms jumping over 2%, and Alphabet climbing more than 3%.
Powell signaled that the central bank could begin easing monetary policy next month, citing a high level of uncertainty that is making it difficult for policymakers to make decisions. He also noted sweeping changes in tax, trade, and immigration policies.
Expectations for a quarter-point rate cut in September surged to roughly 83% following Powell’s speech. Analysts say the bar is now extremely high for the Fed to leave rates unchanged in less than a month.
In contrast, other major market indexes saw smaller gains. The Dow Jones Industrial Average rose 306 points in the early morning session, while the S&P 500 and Nasdaq Composite also posted modest gains.
The rally was broad-based, with over 30% of stocks in the S&P 500 trading at new 52-week highs. Investors are optimistic that Powell’s comments could lead to a series of rate cuts, which would boost economic growth and help stabilize inflation.
Meanwhile, ether surged after Powell’s speech, jumping 9% to above $4,600. Shares in companies focused on accumulating ether rose with the cryptocurrency.
Overall, Powell’s speech has sent a strong signal that the Fed is open to easing monetary policy, which could have significant implications for the US economy and financial markets.
Source: https://www.cnbc.com/2025/08/21/stock-market-today-live-updates.html