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U.S. equity markets closed the week with strong gains, led by a record-setting performance from the Dow Jones Industrial Average. The rally followed remarks by Federal Reserve Chair Jerome Powell, who indicated that monetary policy could shift toward easing as early as next month.
The Dow surged 846.2 points, or 1.9%, to a historic close of 45,631.7. The S&P 500 rose 1.5% to 6,466.9, while the Nasdaq Composite climbed 1.9% to 21,496.5. Technology stocks led the advance, with Alphabet up 3.2%, Amazon gaining 3.1%, Meta Platforms rising 2.1%, and Nvidia adding 1.7%.
Powell’s comments at the Fed’s annual Jackson Hole symposium suggested that evolving economic risks may warrant a policy adjustment. He cited changes in tax, trade, and immigration policy as factors shaping the central bank’s outlook.
Investor expectations for a September rate cut rose sharply, with the CME Group FedWatch Tool showing an 84.1% probability, up from 75% the previous week.
The rally reversed earlier losses in tech stocks and lifted weekly performance for major indexes. The Dow gained 1.5% for the week, the S&P 500 added 0.3%, while the Nasdaq edged down 0.6%.
Bond yields declined amid growing anticipation of policy easing. The 10-year Treasury yield fell to 4.256%, while the 2-year yield dropped to 3.698%.
