Aug. 22 at 5:49 PM
The Dow Jones Industrial Average rose 913 points (2.04%) at midday, in a positive session boosted by Fed Chair Jerome Powell signaling a potential upcoming rate cut.
The S&P 500 gained 1.5% and the tech-heavy Nasdaq added 1.8% by the same time.
Stock buying coincided with a drop in volatility around 12%, per the VIX, reflecting greater market confidence.
At the Jackson Hole symposium, Powell said the “balance of risks” for the U.S. economy is “shifting,” highlighting concerns over the labor market and growth potential, suggesting the Fed may cut rates soon.
The Fed’s next policy meeting is Sept. 16-17, with many traders anticipating easing. CME FedWatch now shows a 90% probability of a 25-basis-point cut in September, up from 75% before Powell’s comments.
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