U.S. equity markets experienced significant gains Friday, with the Dow Jones Industrial Average closing at 45,632 points, representing a 1.9 percent increase from the previous session. The broader S&P 500 rose by 1.5 percent to approximately 6,467 points, while the Nasdaq 100 saw a 1.9 percent increase, closing around 23,497 points.
Driving market sentiment was commentary from Federal Reserve Chair Jerome Powell, delivered at the Jackson Hole economic symposium. Powell indicated openness to a potential interest rate reduction in September, stating, “the basic outlook and evolving risks may warrant an adjustment to our course.
He expressed growing concern regarding the labor market, though characterizing it as currently balanced. Powell described a unique situation of decelerating labor supply alongside reduced demand, highlighting potential downside risks to employment and the possibility of increased layoffs and unemployment should those risks materialize. Economists anticipate that a lower interest rate could stimulate economic growth and subsequently boost labor demand.
In currency markets, the Euro strengthened against the U.S. Dollar, trading at 1.1720 USD per EUR. Conversely, the Dollar was valued at 0.8532 EUR.
Commodity markets also saw movement. Gold prices rose 1.0 percent to 3,373 USD per troy ounce, equivalent to 92.53 EUR per gram. Oil prices also increased, with Brent crude oil trading at 67.85 USD per barrel – a 0.3 percent gain from the prior close.