US shares see significant surge after Powell’s remarks
Date
8/25/2024 4:10:06 AM
(MENAFN) US Stocks saw a significant surge following dovish remarks from Federal Reserve Chairman Jerome Powell, which bolstered expectations that the central bank might reduce interest rates in September. Powell's comments, delivered during a highly anticipated speech at the Jackson Hole Economic Symposium, suggested a shift in the Fed's monetary policy approach, further fueling market optimism.
In his speech, Powell stated that "the time has come" for a rate cut, noting that "the risks of increasing inflation have diminished," according to a UK news agency. His remarks were seen as a clear indication that the central bank is leaning towards a rate reduction at its next policy meeting. Powell also emphasized that the Federal Reserve does not foresee or welcome further deterioration in labor market conditions, underscoring the importance of maintaining economic stability.
Following Powell's address, the three major US stock indexes experienced a notable jump, with major companies like Nvidia, Apple, and Tesla leading the charge. These companies provided significant support to the broader market rally, reflecting investor confidence in the anticipated policy shift.
The Dow Jones Industrial Average rose by 462.3 points, or 1.14 percent, reaching 41,175.08. Similarly, the S&P 500 gained 63.97 points, or 1.15 percent, climbing to 5,634.61. Meanwhile, the Nasdaq Composite saw the most significant increase, adding 258.44 points, or 1.47 percent, to close at 17,877.79. The broad gains across these indexes highlighted the positive market response to Powell's comments and the potential for a more accommodative monetary policy in the near future.
MENAFN25082024000045015839ID1108597683
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.