Wall Street closes higher as Powell hints at Fed rate cut
Wall Street's main indexes ended higher on Friday, with the blue-chip Dow hitting a record closing high, as investors piled into stocks after U.S. Federal Reserve Chair Jerome Powell hinted at a near-term interest-rate cut during his Jackson Hole Symposium speech.
His comments paved the way for a potential rate cut at the Fed's September 16-17 meeting, although Powell stressed the importance of jobs and inflation data due before then.
Traders boosted bets on a September rate cut after Powell's comments, now placing a nearly 90% chance of a reduction, versus about 75% before Powell's remarks.
According to preliminary data, the S&P 500 gained 96.73 points, or 1.52%, to end at 6,466.55 points, while the Nasdaq Composite gained 396.22 points, or 1.88%, to 21,496.54. The Dow Jones Industrial Average rose 841.14 points, or 1.88%, to 45,626.64.
Ten of the 11 S&P 500 sub-sectors traded higher, with consumer discretionarythe biggest gainer.
Source : Reuters
