Dow closes at record high after Powell opens door to rate cut in Jackson Hole speech

The U.S. stock market closed sharply higher Friday, as investors cheered the potential for interest rate cuts following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium.

The Dow Jones Industrial Average notched a record peak. The S&P 500 ended slightly below its all-time closing high of 6,468.54 on Aug. 14, with Friday’s stock-market rally lifting the index to a modest gain for the week.

The S&P 500 climbed 96.74 points, or 1.5%, to finish at 6,466.91.

The Dow rallied 846.24 points, or 1.9%, to end at 45,631.74.

The Nasdaq Composite jumped 396.22 points, or 1.9%, to close at 21,496.53.