On Friday, stocks went up as investors waited for Federal Reserve Chair Jerome Powell’s speech, which is expected to give hints about possible interest rate cuts. The Dow Jones Industrial Average rose by 233 points (0.6%), the S&P 500 went up by 0.6%, and the Nasdaq Composite increased by 0.8%. This optimism shows hopes that Powell might suggest lowering rates, though it’s still unclear how much or when cuts might happen.
Powell’s speech at the Fed’s Jackson Hole conference is anticipated to pave the way for the first rate cut in over four years, thanks to easing inflation and slowing economic growth. However, clear details on the size or timing of the cuts are not expected, keeping investors guessing.
Despite some pressure from rising Treasury yields on Thursday, the major indexes are on track for a good week, with the Dow and Nasdaq up about 0.7% and the S&P 500 up by 0.9%. Most expect a rate cut in September, but the exact size of the cut is still debated, making Powell’s comments highly anticipated.
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