U.S. Stocks Surge as Fed Signals Rate Cut

U.S. stocks surged after Federal Reserve Chair Jerome Powell indicated a likely rate cut in September during the Jackson Hole Economic Symposium. Major indexes saw significant gains, driven by megacap stocks like Nvidia, Apple, and Tesla. All sectors of the S&P 500 ended positively, with financials seeing notable increases.

U.S. stocks rallied on Friday following dovish remarks from Federal Reserve Chair Jerome Powell, solidifying expectations for a rate cut in September.

Powell, in remarks at the Jackson Hole Economic Symposium, indicated that "the time has come" to lower the Fed funds target rate as inflation risks have diminished.

Major indexes, including the Dow Jones, S&P 500, and Nasdaq, jumped, with megacaps Nvidia, Apple, and Tesla leading the rise.

Small caps and regional banks outperformed, surging 3.2% and 4.9%, respectively, as financials reached an all-time high.

The S&P 500 posted new 52-week highs without any new lows, while the Nasdaq had 149 new highs and 51 new lows.

Workday saw a 12.5% gain following positive earnings and a $1 billion stock buyback plan. Ross Stores also climbed 1.8% after raising its profit forecast for 2024.

Conversely, Intuit fell 6.8% due to disappointing quarterly revenue. Advancing issues outnumbered declining ones significantly on both the NYSE and Nasdaq.

(With inputs from agencies.)