The major market averages rose on Friday after traders and investors heard from Fed chief Jerome Powell at the Jackson Hole Economic Symposium.
Early on and the Nasdaq Composite (COMP:IND) was +1.7%, the S&P 500 (SP500) was +1.2%, and the Dow (DJI) was +1.0%.
At the Jackson Hole Economic Symposium, Powell stated: “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
“It seems unlikely that the labor market will be a source of elevated inflationary pressures anytime soon. We do not seek or welcome further cooling in labor market conditions,” the Fed chairman went on to say.
The remarks in the prepared text of his speech indicates that the Federal Open Market Committee will cut its policy rate at its Sept. 17-18 meeting from its current level of 5.25%-5.50%.
As a result of Powell’s address, Treasury yields pushed lower. The 10-year Treasury yield (US10Y) was down 4 basis points to 3.81% and the 2-year yield (US2Y) fell 5 basis point to 3.95%.
Also on the economic calendar, investors watched U.S. new home sales grow 10.6% to 739K in July, which was higher than the 624K expected level.
As for stocks that were on the move, shares of Workday (WDAY) soared 10.9% after the back-office software company raised its operating margin profile for the next couple of years.
Moreover, CAVA Group’s (CAVA) surged over 15% to a new all-time high following the company’s strong Q2 results.
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