S&P 500 Nears Record as Powell Signals Rate Cuts
Major U.S. stock indexes surged over 1% as Federal Reserve Chair Jerome Powell signaled imminent interest rate cuts. His comments at the Jackson Hole economic conference, citing job market risks and controlled inflation, fueled market optimism. The S&P 500 approached a record high, bolstered by bullish data and positive corporate earnings.
The three major U.S. stock indexes gained over 1% on Friday, nearing an all-time high for the S&P 500, after Federal Reserve Chair Jerome Powell indicated that the time had come to reduce interest rates.
Speaking at the annual economic conference in Jackson Hole, Powell cited job market risks and nearing the Fed's 2% inflation target as reasons for the policy easing. Minutes from the Fed's July meeting also showed several policymakers were ready to consider rate cuts by September.
Traders have now fully priced in a rate cut at the Fed's September 17-18 meeting, with a 65.5% chance of a 25 basis-point reduction, according to CME Group's FedWatch tool. Dovish comments from Fed officials and data suggesting a gradually slowing economy have helped U.S. stocks recover from earlier turmoil in August.
(With inputs from agencies.)
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