S&P500 and Dow Jones: US Stocks Surge Today on Powell’s Dovish Rate Cut Forecast

Wall Street Soars as Powell Signals Possible September Rate Cut

Wall Street surged Friday, with major indexes jumping nearly 2%, after Federal Reserve Chair Jerome Powell suggested the central bank could cut interest rates as early as its September meeting.

Speaking at the Jackson Hole Symposium, Powell noted that recent economic data, particularly concerning labor market softness, could justify a policy shift—provided upcoming jobs and inflation figures support such a move.

Could a September Fed Rate Cut Now Be the Base Case?

Following Powell’s remarks, traders boosted bets on a rate cut next month, with CME FedWatch data showing a near 90% probability—up from 75% earlier. Analysts highlighted the Fed chair’s clear emphasis on weakening labor conditions rather than inflationary pressures from tariffs, marking a pivot that traders interpreted as dovish.

Art Hogan of B Riley Wealth commented that Powell’s acknowledgment of shifting risks in the economy opened the door for monetary easing, making September a “very live” meeting for potential action.

Indexes Hit Highs with Broad-Based Sector Gains

The Dow Jones Industrial Average surged 895 points (2%) to 45,680.62, marking a fresh all-time high. The S&P 500 gained 1.62% to 6,473.68, and the Nasdaq rose 1.94% to 21,509.44. All 11 sectors in the S&P 500 ended in the green, with rate-sensitive real estate up 1.8% and consumer discretionary stocks climbing nearly 2%.

Chipmakers led tech gains, with the Philadelphia Semiconductor Index jumping 3.7%. Tesla advanced 5.2%, spearheading megacap growth stock gains. Friday’s rally snapped the S&P 500’s five-session losing streak, as technology names rebounded following recent pressure.

What’s Fueling the Market Rebound Beyond the Fed?

Recent strength in corporate earnings and easing trade tensions have played a critical role in lifting sentiment. U.S. equities have recovered sharply from April lows tied to tariff concerns, and now hover near all-time highs.

UBS Global Wealth Management raised its S&P 500 year-end target for the second time in two months, citing resilient earnings and the increasing likelihood of monetary easing.

Which Stocks Lagged Despite the Rally?

Not all names participated in the uptrend. Intuit sank 6.2% after forecasting weaker-than-expected Q1 revenue, blaming softness in its Mailchimp business. Workday also dropped 4.4% following an in-line guidance update.

Market Outlook: All Eyes on Data Ahead of Fed Decision

With the Fed’s September meeting in sharp focus, upcoming jobs and inflation reports will be critical in shaping expectations. Traders will closely monitor economic releases in the coming weeks to gauge whether the Fed will follow through with a rate cut. A supportive data backdrop could add fuel to the current market momentum.

More Information in our Economic Calendar.