Traders work on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., August 21, 2025.
Brendan McDermid | Reuters
The Dow Jones Industrial Average rallied to an all-time excessive Friday after Federal Reserve Chair Jerome Powell signaled the central financial institution could begin easing monetary policy subsequent month.
The Dow climbed 846.24 factors, or 1.89%, reaching a recent excessive and shutting at a file stage of 45,631.74. The S&P 500 rose 1.52% to finish at 6,466.91. At its session excessive, the broad market index got here inside three factors of its file. The Nasdaq Composite gained 1.88% and settled at 21,496.53.
Shares of megacap expertise shares soared on Powell’s feedback. Nvidia added 1.7%, whereas Meta Platforms jumped greater than 2%. Alphabet and Amazon every climbed greater than 3%. Tesla shares jumped about 6%.
In a tepid speech on the central financial institution’s annual conclave in Jackson Hole, Wyo., Powell stated that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” The Fed chief added that “the balance of risks appear to be shifting” between the central financial institution’s twin mandate of full employment and secure costs. He cited “sweeping changes” in tax, commerce and immigration insurance policies.
Expectations for a quarter-point price reduce in September surged to roughly 83% following the pace from about 75% earlier within the week, in keeping with the CME Group’s FedWatch software.
“The bar is extremely high now for the Fed to leave rates unchanged in less than a month,” stated Chris Zaccarelli, chief funding officer at Northlight Asset Management.
Friday’s efficiency got here in distinction to way more downbeat market motion this week. The main averages entered the session decrease week thus far as a consequence of strain in megacap tech. The newest rally helped buyers claw again a lot of the losses from earlier within the week.
For the week, 30-stock Dow superior 1.5%, and the S&P 500 gained 0.3%, whereas the Nasdaq slipped 0.6%.