Stocks rose on Friday after Federal Reserve Chair Jerome Powell hinted at possible rate cuts during his Jackson Hole speech. The Dow Jones Industrial Average closed up 1.89%, the S&P 500 rose 1.52%, and Nasdaq was up 1.88%. Powell addressed the stable unemployment rate and potential policy adjustments.

At the Jackson Hole Economic Symposium, Powell referenced rate cuts and the need for careful policy changes. He highlighted the balance between inflation risks and a weakening labor market due to tariffs. Powell emphasized the Fed’s commitment to prevent a one-time price increase from becoming a long-term inflation issue.

Financial markets reacted positively to Powell’s comments, with the S&P 500 rising 1.3% and the Dow Jones Industrial Average increasing by 700 points. Powell acknowledged the challenges posed by tariffs and inflation, reassuring that the Fed is managing the situation carefully. He emphasized the importance of maintaining price stability amidst economic uncertainties.

Read more at Yahoo Finance: Markets close on a high after Powell’s hinted at cuts