US stocks closed higher on Friday, August 23, after Federal Reserve Chairman Jerome Powell suggested the bank may cut interest rates in September, citing declining inflation risks.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all rose, driven by strong results from major companies such as Nvidia, Apple and Tesla. Financial stocks hit all-time highs, signaling market confidence. All three major indexes ended the week with solid gains.
According to economic data, Baker Hughes reported that the total number of active U.S. oil rigs remained steady at 483 this week.
Speaking at Jackson Hole, Fed Chairman Jerome Powell hinted at an interest rate adjustment in the near future, stressing that any future decisions would be data-driven without committing to a specific timing or size.
All 11 major sectors of the S&P 500 ended in positive territory, with real estate stocks leading the gains.
The Dow Jones Industrial Average rose 1.14% to close at 41,175.08, the S&P 500 rose 1.15% to close at 5,634.61 and the Nasdaq Composite rose 1.47% to close at 17,877.79.
Asian Markets Today
On Monday, Japan's Nikkei Stock Average closed down 0.94% at 38,058.00, hurt by losses in the transportation equipment, services and electrical and machinery sectors. Australia's S&P/ASX 200 closed up 0.76% at 8,084.50, hurt by gains in communication services, financials and energy. India's Nifty 50 closed up 0.76% at 25,010.60 and the Nifty 500 closed up 0.61% at 23,561.75. China's Shanghai Composite Index rose 0.04% to 2,855.52, while the Shenzhen CSI closed down 0.09% at 3,324.22. Hong Kong's Hang Seng Index rose 1.06% to 17,798.73.
Eurozone 6:15am ET
The European STOXX 50 index fell 0.08%. Germany's DAX fell 0.22%. France's CAC rose 0.15%. UK markets were closed for the bank holiday.
Items at 6:15am EST
WTI crude oil traded 1.86% higher at $76.27/bbl, while Brent rose 1.69% to $79.50/bbl. Crude oil prices rose as fears of the Gaza conflict grew and could disrupt regional oil supplies, extending gains from Friday, driven by optimism that a US interest rate cut would boost the outlook for the global economy and fuel demand. Natural gas fell 1.01% to $2.158. Gold was up 0.63% to $2,562.50, silver was up 1.31% to $30.6555 and copper was up 0.69% to $4.2745.
US Futures 6:15am ET
Dow futures rose 0.07%, S&P 500 futures rose 0.18% and Nasdaq 100 futures rose 0.23%.
Forex at 6:15am ET
The USD Index rose 0.05% to 100.77, USD/JPY fell 0.24% to 144.01 and USD/AUD rose 0.22% to 1.4763. The contrast between Fed Chairman Powell's dovish stance and Bank of Japan Governor Ueda's hawkish stance led the USD to weaken, hitting a three-week low against the JPY. The USD was also near multi-month lows against the EUR and GBP, reflecting the difference in central bank policy and expectations of a US interest rate cut.
Photo by Sharon McCutcheon on Unsplash
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