US stocks rise after Powell's dovish remarks, expected interest rate cut
Date
8/25/2024 5:59:37 AM
(MENAFN) U.S. Stocks experienced a significant surge on Friday, driven by Federal Reserve Chairman Jerome Powell's dovish remarks that bolstered expectations of an interest rate cut in September. During his highly anticipated address at the Jackson Hole Economic Symposium, Powell indicated that "the time has come" for a rate reduction, noting that the risks associated with rising inflation have lessened. He emphasized that the Federal Reserve is not seeking further deterioration in labor market conditions, suggesting a likely rate cut at the upcoming policy meeting—potentially the first in over four years.
Following Powell’s speech, all three major U.S. stock indexes saw notable gains. The Dow Jones Industrial Average increased by 462.3 points, or 1.14 percent, reaching 41,175.08. The S&P 500 rose by 63.97 points, or 1.15 percent, to settle at 5,634.61. The Nasdaq Composite climbed 258.44 points, or 1.47 percent, ending the day at 17,877.79. Major tech stocks, including Nvidia, Apple, and Tesla, were among the biggest contributors to this upward movement, reflecting a positive market reaction to the Fed’s anticipated policy shift.
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