US Stock Market Today: Wall Street Indices Surge As Powell's Jackson Hole Address Signals Potential Rate Cuts
In his address, Powell suggested that the current balance of risks 'may warrant adjusting policy'.
Wall Street indices shot up on Friday, marking the strongest trading session since April, after Federal Reserve Chair Jerome Powell's highly-anticipated speech at the Jackson Hole economic symposium.
The Dow Jones Industrial Average soared by 2.07% to 45,714.20 as of 09:50 p.m. IST, while the S&P 500 rose 1.52% or 96.80 points to trade at 6,466.97. The Nasdaq Composite index also posted significant gains, rising 1.74% on Friday, as investors interpreted Powell's comments as a clear sign that a long-awaited rate cut is on the horizon.
In his address, Powell suggested that the current balance of risks "may warrant adjusting policy." He indicated that downside risks to employment are rising, and that labor supply has softened in-line with demand. He warned stable inflation expectations can't be taken for granted.
This year, however, new challenges have emerged, pointed out Powell. "Significantly higher tariffs across our trading partners are remaking the global trading system. Tighter immigration policy has led to an abrupt slowdown in labor force growth," Powell said, adding that changes in tax, spending, and regulatory policies could also shape long-term productivity.
Shares of Tesla surged over 5% to $336.59 apiece, with Intel also seeing a 4% jump to $24.47. Palantir Technologies reversed its downwards trend to trade 3% higher, followed by Advanced Micro Devices and Novo Nordisk trading over 2% higher on Friday.
Walmart share price, however, bucked the trend to slip marginally lower to 0.57%.
Only the consumer staples sector was in the red on Friday, with the remaining 10 S&P 500 sectors on an upwards trend. Consumer discretionary, real estate, and materials led the gains.
Oil prices also edged higher Friday, reversing a two-week losing streak, amid increasing signs that peace negotiations between Russia and Ukraine are likely heading towards a pause.
At 10:10 p.m. IST, Brent futures gained 0.03% to $67.69 a barrel, and US West Texas Intermediate crude futures rose 0.22% to $63.66 a barrel.
