Dow Jumps 300 Points as Fed Signals Rate Cuts

Stocks experienced a notable uptick after Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts during his speech at the Jackson Hole Economic Symposium in Wyoming. Powell emphasized that the timing and pace of any rate reductions would be contingent on incoming economic data and the evolving outlook. This announcement led to significant gains in major tech stocks, with Tesla rising over 4%, while Nvidia and Advanced Micro Devices saw increases of more than 3% and 2%, respectively. The positive sentiment extended to small-cap stocks, with the Russell 2000 index climbing more than 2%. Major indices also reflected this upward trend, with the Dow and Nasdaq each gaining around 1%, and the S&P 500 rising approximately 1.1%. The Nasdaq Composite recorded a 1% increase during Friday's trading session, bolstered by Powell's remarks regarding future rate cuts. In related news, Atlanta Federal Reserve President Raphael Bostic indicated that an interest rate cut is "in play" for September, although he refrained from making a definitive commitment. Additionally, Chewy, the pet retailer, saw its stock rise over 2% following an upgrade from Piper Sandler, which changed its rating from neutral to outperform. European markets also opened higher in anticipation of Powell's speech, with the U.K.'s FTSE index up 0.29%, Germany's DAX rising 0.25%, France's CAC 40 increasing by 0.28%, and Italy's FTSE MIB gaining 0.44%.