.SPX

<p>Powell's dovish turn in speech pushes S&P close to new highs, with small caps and chip stocks up about 3%. Major indices rose over 1% for the week, with small caps leading. On Friday, Tesla and Nvidia surged over 4.5%, regional bank stocks ETF briefly rose over 6%. Short-term US Treasury yields plunged into double digits, the US dollar fell 1.7% for the week, spot gold rose over 1% back above $2510, pound at nearly two and a half year high, yen up over 1%, offshore RMB up over 300 points, oil up over 2% but down for the week</p>

- Federal Reserve Chair Powell hinted at a September rate cut during the Jackson Hole symposium, citing steady U.S. economic growth and increased confidence in inflation reaching 2%. Analysts predict a potential larger rate cut if August nonfarm data shows unexpected labor market weakness, with markets anticipating multiple rate cuts by 2024.
- Powell's dovish stance led to increased rate cut expectations, boosting risk appetite with U.S. stocks, gold prices hitting daily highs, and oil prices rising. European Central Bank also leans towards rate cuts, supporting Eurozone inflation expectations. Additionally, Apple plans a September product launch, while Meta cancels a high-end headset launch plan for 2027.
- U.S. stock indices surged post-Powell's speech, with tech stocks leading the rally. Semiconductor and AI concept stocks rose, while Chinese stocks showed mixed performance. The dovish sentiment weakened the U.S. dollar, driving up non-U.S. currencies, and lowering U.S. bond yields, supporting precious metals and commodity prices.

Wallstreetcn

S&P 500

Powell hints at rate cut in September, global assets in a frenzy, stocks, bonds, commodities, and digital currencies all rise, US dollar hits a one-year low