Wall Street saw a significant uptick on Friday as the benchmark S&P 500 index edged closer to a record high. The surge in stock indexes followed Federal Reserve Chair Jerome Powell’s remarks at the annual economic conference in Jackson Hole. Powell’s endorsement of imminent policy easing citing risks in the job market and inflation nearing the Fed’s 2% target ignited optimism among investors.
Key players in the tech industry such as Meta and Amazon.com experienced a 1% surge each, contributing to the overall boost in the S&P 500 index. Additionally, chip stocks like Nvidia and Broadcom witnessed a more than 3% increase, further bolstering market performance.
As of 10:05 a.m., the Dow Jones Industrial Average was up by 0.74%, the S&P 500 had gained over 1%, and the Nasdaq Composite saw a 1.45% increase. This momentum marked the second consecutive week of gains for the three indexes, with the S&P 500 on track for a 1% rise.
Amidst Powell’s indication of policy easing, traders have priced in a 71.5% chance of the central bank cutting borrowing costs by 25 basis points at the upcoming Fed meeting on Sept. 17 and 18. This anticipation of a rate cut comes as the market responds to signals of a slowing U.S. economy.
Workday shares surged by 11.2% after exceeding market expectations for second-quarter revenue and announcing a $1 billion stock buyback plan. In another notable development, Cruise announced plans to offer its autonomous vehicles on Uber’s ride-hailing platform, resulting in a 2.2% increase in General Motors’ shares.
Ross Stores experienced a 3.8% gain after raising its fiscal 2024 profit forecast, further adding to the positive momentum in the market.
Advancing issues significantly outnumbered decliners, with the S&P 500 marking 52 new 52-week highs. The overall market sentiment remains buoyant as investors anticipate the Fed’s potential rate cut in the near future.
Wall Street’s recent performance reflects a positive sentiment driven by the anticipation of policy easing and strong company performances across various sectors. As market dynamics continue to evolve, investors are closely monitoring developments leading up to the Fed’s upcoming meeting in September.
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