Wall Street Rally Surges After Powell Signals Possible Rate Cuts

U.S. stock markets surged to new highs following Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium, where he signaled the possibility of interest rate cuts as early as September. Powell highlighted that while inflation has eased and the labor market remains strong, the balance of economic risks is shifting, prompting the Fed to consider adjusting its policy stance based on data. Investors responded positively to Powell's more flexible tone, interpreting it as a green light for monetary easing, which boosted technology, small-cap, and rate-sensitive stocks. The Dow Jones Industrial Average reached record levels with gains of around 2%, while the S&P 500 and Nasdaq also posted strong increases. Market commentators noted that Powell's key phrase "may warrant adjusting our policy stance" was the main catalyst for the rally, reflecting hopes that borrowing costs could soon decrease. President Trump, commenting on Powell's remarks, suggested that the timing for a rate cut might be too late to impact the market effectively.