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US stocks surged as Fed chair Jerome Powell signaled imminent interest rate cuts.
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Powell confirmed the dovish pivot in his speech at the Jackson Hole Economic Symposium.
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“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data,” Powell said.
US stocks rallied on Friday with the Dow Jones Industrial Average gaining more than 450 points after Federal Reserve Chairman Jerome Powell confirmed that interest rate cuts are near.
Powell indicated the central bank’s coming dovish pivot in his speech at the Jackson Hole Economic Symposium on Friday, saying that “the time has come for policy to adjust.”
Bond yields dropped during the day following the remarks. The 10-year Treasury yield fell six basis points to 3.801%, while the two year-note — which is highly sensitive to Fed policy — dropped nine basis points to 3.915%.
“The…
