Wall Street Soars Over 1,000 Points as Powell Hints at Rate Cuts in Jackson Hole

U.S. stocks staged a sharp rebound on Friday, snapping a two-day losing streak, after Federal Reserve Chair Jerome Powell signaled the central bank may be preparing to cut interest rates.

The Dow Jones Industrial Average jumped nearly 1,000 points, or 2.2%, to close at 43,744. The Nasdaq 100, driven by heavyweight tech stocks, climbed 355 points (1.7%) to settle at 21,448, while the S&P 500 advanced about 100 points (1.5%) to reach 6,465.

Powell, speaking at the annual Jackson Hole Economic Symposium, emphasized the Fed’s independence but acknowledged that current conditions could justify a shift toward monetary easing.

“Our policy rate is still a full percentage point higher than last year,” Powell noted, highlighting that unemployment remains low and inflation risks are easing. “This gives the Federal Reserve room to move carefully.”

Fed Chair’s comments reassured investors that the Fed could begin easing its tight monetary stance sooner rather than later, fueling optimism across equity markets and sparking one of Wall Street’s strongest rallies in weeks.