U.S. stock markets experienced significant gains Friday, closing with robust performance across major indices. The Dow Jones Industrial Average finished the day at 45,632 points, representing a 1.9 percent increase from the previous session’s close.
The broader S&P 500 index also saw substantial growth, reaching approximately 6,467 points for a gain of 1.5 percent. Simultaneously, the Nasdaq 100 closed at around 23,497 points, up 1.9 percent.
Driving market sentiment was commentary from Federal Reserve Chairman Jerome Powell, who indicated openness to a potential interest rate cut in September. Speaking at the Jackson Hole economic symposium, Powell stated, “The basic outlook and evolving risks could warrant an adjustment to our course.
Powell highlighted growing concerns regarding the labor market, while still characterizing it as balanced. He described a “peculiar balance” resulting from a slowdown in both labor supply and demand, suggesting rising downside risks to employment. “And if those risks materialize, they could manifest quickly in the form of noticeably higher layoffs and rising unemployment” he explained. Economists generally anticipate that lower interest rates can stimulate economic growth and, consequently, bolster demand for labor.
In currency markets, the Euro strengthened against the dollar, trading at 1.1720 US dollars Friday evening. This translated to a dollar value of 0.8532 Euros.
Commodity markets also reflected shifts in economic outlook. Gold prices rose 1.0 percent to close at 3,373 US dollars per fine ounce, equivalent to 92.53 Euros per gram. Meanwhile, Brent crude oil gained 0.3 percent to 67.85 US dollars per barrel late Friday evening Central European Time.
