Dow hits record high as rate cut expectations soar
The Dow Jones closed at an all-time high of 45,631.74 on Friday, jumping 1.9% after Federal Reserve Chair Jerome Powell hinted at a possible interest-rate cut in September.
The S&P 500 and Nasdaq also saw strong gains.
Rate cut boosts US markets
A potential rate cut is big news for anyone interested in the economy or investing—it usually means cheaper borrowing and can boost everything from stocks to crypto.
After Powell's comments at Jackson Hole, the odds of a September rate cut shot up to nearly 90%, sending optimism through the markets.
Even smaller companies rallied, with the Russell 2000 index hitting its best level this year.
Powell's words fuel investor enthusiasm
Powell said future Fed moves will depend on inflation and jobs data—so he's open to easing policy if things slow down.
Investors responded fast: tech stocks like Tesla soared, and advancing stocks outnumbered decliners by more than nine to one on the New York Stock Exchange.