Stock Markets Surge as Fed Signals Rate Cuts

Wall Street's stock indexes rose on Friday, with the S&P 500 nearing a record high. Federal Reserve Chair Jerome Powell announced potential interest rate reductions, citing risks in the job market and inflation nearing the Fed's 2% target. Leading tech and chip stocks boosted the indexes.

Wall Street's stock indexes jumped on Friday, with the benchmark S&P 500 index nearing a record high, after Federal Reserve Chair Jerome Powell stated that 'the time has come' to reduce interest rates.

Speaking at an annual economic conference in Jackson Hole, Powell endorsed imminent policy easing, citing risks in the job market and inflation approaching the Fed's 2% target. The S&P 500 extended early gains and was less than 1% away from surpassing a record high clinched in July, following a 9.7% drop earlier this month.

Leading growth stocks like Meta and Amazon.com climbed 1% each, while chip stocks like Nvidia and Broadcom rose over 3%. By 10:05 a.m., the Dow Jones Industrial Average had risen by 302.68 points (0.74%), the S&P 500 gained 56.13 points (1.01%), and the Nasdaq Composite increased by 255.03 points (1.45%).

(With inputs from agencies.)