The Dow Jones Industrial Average marked a record close on Friday, its first in 2025. Small-cap stocks and Treasuries also rallied, as investors got the clearest indication yet from Federal Reserve Chair Jerome Powell that the central bank could cut interest rates in September.
The Dow rose 846 points, or 1.9%, while the S&P 500 gained 1.5% and the Nasdaq Composite climbed 1.9% higher.
The S&P 500’s strong performance came after a five-day losing streak. “We thought a bounce was likely, but today’s action is certainly more than a bounce. We will therefore respect this action and as long as SPX remains above ~6400, put our cautious view on the back burner for now,” wrote Jonathan Krinsky, Managing Director and Chief Market Technician at BTIG.