by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended sharply higher on Friday after Jerome Powell said it was time to cut interest rates at the U.S. Federal Reserve.
Fed Chairman Jerome Powell said Friday that now is the time for the U.S. central bank to cut interest rates, citing growing risks to the jobs market and as inflation is on track to hit the 2% target.
The Dow Jones Industrial Average gained 1.14 percent, or 462.30 points, to 41,175.08. The broader Standard & Poor’s 500 gained 63.97 points, or 1.15 percent, to 5,634.61. The Nasdaq Composite Index gained 258.44 points, or 1.47 percent, to 17,877.794.
Markets have fully priced in a 25 basis point US rate cut in September and are pricing in one at the Fed’s three remaining meetings this year, including a 50 basis point cut.
The latest US statistics, including weekly jobless claims, have eased fears of a US recession, which had shaken markets at the beginning of the month.
“The Fed is clearly moving toward the dovish camp and Powell has made it clear that September will mark the beginning of multiple rate cuts to come for the remainder of the year,” said Ryan Detrick, chief rate strategist at Carson Group in Omaha, Nebraska.
VALUES
In stocks, human resources specialist Workday climbed 12.5% ​​after reporting better-than-expected second-quarter profit and announcing a $1 billion share buyback plan.
(Paris editorial)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
