U.S. Stocks Surge Following Dovish Fed Remarks by Jerome Powell
U.S. stocks experienced a rally due to dovish remarks from Federal Reserve Chair Jerome Powell, signaling a potential rate cut in September. The major U.S. stock indexes saw gains, with tech giants Nvidia, Apple, and Tesla leading the charge. Economic indicators next week will be crucial for the Fed's decision.
U.S. stocks rallied on Friday as dovish remarks from U.S. Federal Reserve Chair Jerome Powell solidified expectations for a rate cut in September. Speaking at the Jackson Hole Economic Symposium, Powell indicated that it's time to lower the Fed funds target rate, citing diminished upside risks of inflation.
"We do not see or welcome further weakening in labor market conditions," Powell stated, hinting at a likely rate cut in the upcoming policy meeting. "This is a dovish Powell today, and markets are responding accordingly," commented Peter Cardillo, chief market economist at Spartan Capital Securities. Small caps and regional banks outperformed, gaining 3.1% and 4.9%, respectively.
Major U.S. stock indexes, powered by heavyweights Nvidia, Apple, and Tesla, extended their gains. Portfolio manager Jay Hatfield noted, "We're seeing the rally you'd expect in interest rate-sensitive stocks." Upcoming economic indicators will provide crucial data for the Fed's September rate decision.
(With inputs from agencies.)
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