US stocks rally: Dow Jones notches another record high after Powell hints at Fed rate cuts

U.S. stocks extended their opening gains after Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Symposium on August 22, hinted at a possible rate cut in the coming months.

Reacting to Powell’s comments, the Dow Jones Industrial Average advanced 732 points, or 1.6%, in intraday trade, hitting another all-time high of 45,545.25. The S&P 500 rose 1.5% to a session high of 6,469, while the tech-heavy Nasdaq Composite gained nearly 1.4% to 21,400 points.

At the Fed’s annual conclave in Wyoming, Powell said in his measured remarks that while U.S. unemployment remains low, “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”

However, while the Fed chief left the door open for rate cuts, he provided no indication on the timing of such a move, suggesting the central bank will proceed cautiously as it continues to assess the impact of tariffs and other policies on the economy.

Last year, the central bank chair used his keynote speech at the Jackson Hole Economic Policy Symposium to indicate the time had come for interest rate cuts. This time, however, the picture is murkier.