US close: Dow hits new high as Powell comments fuel rate-cut hopes
By Benjamin Chiou
Date: Friday 22 Aug 2025
(Sharecast News) - US stocks raced higher on Friday after Federal Reserve chair Jerome Powell hinted that an interest-rate cut could be on the cards at the next policy meeting, with the Dow Jones Industrial Average hitting a new record.
"Worries about higher inflation have been cast aside for now, as investors look forward to the US economy powering ahead in the autumn," said Chris Beauchamp, chief market analyst at IG.
The Dow finished 1.9% higher at 45,631.74, with just six of its constituents in the red, as the index blew past its previous all-time closing peak of 45,014.04 reached in December. The Nasdaq also rose 1.9%, while the S&P 500 gained 1.5%, with both closing in on their own record highs.
In a hotly anticipated keynote speech at the Jackson Hole conference of central bankers in Wyoming, Fed chair Jerome Powell opened the door to rate cuts, saying that the inflationary impact of Donald Trump's trade tariff regime wasn't as bad as first thought. "With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," Powell said.
The Fed head said the evolving risk landscape and baseline economic outlook could justify a recalibration of the Fed's stance, hinting at a growing openness to easing, should incoming data continue to soften. Powell also noted that, despite slowing job growth, the unemployment rate has remained low.
Berenberg, who had previously not expected the Fed to loosen policy in September, now predicts a 25-basis point reduction in rates at meetings in September and October.
"Based on Fed Chair Powell's emphasis on slowing jobs growth and growing downside risks to the labour market in his Jackson Hole remarks, we have changed our Fed call," said Berenberg's US economist Atakan Bakiskan. "The July nonfarm payrolls report was clearly a catalyst for Powell's more dovish comment. For some Fed members, modest rate cuts this autumn may also be an attempt to deflect the political pressure on the Fed without yielding too much."
Also helping sentiment on Friday was the news that Canada is to remove trade tariffs on some US goods in a sign of goodwill, following talks between prime minister Mark Carney and Trump on Thursday. Canada left its 25% tariffs on US steel, alumnium and automobile imports in place, but said tariffs on $21bn of US imports would no longer apply.
Market movers
Tech stocks jumped as Powell's dovish comments fuelled risk appetite. Semiconductor names Microchip, Nvidia and Broadcom rose strongly, along with household names Apple, Intel, Amazon.com and Tesla.
Meanwhile, economic bellwethers Home Depot, Caterpillar and American Express were rising on the Dow.
Software firm Workday fell after warning of challenges in its government and education units. Third-quarter revenue guidance meeting expectations, though margin targets were slightly behind estimates.
Sector peer Intuit dropped sharply despite fourth-quarter results beating forecasts, as first-quarter revenue growth came in below expectations on the Street.
Dow Jones - Risers
Intel Corp. (INTC) $24.80 6.87%
Dow Chemical Co. (DOW) $24.99 6.18%
Caterpillar Inc. (CAT) $435.78 4.26%
Home Depot Inc. (HD) $412.35 3.87%
American Express Co. (AXP) $318.92 3.61%
Goldman Sachs Group Inc. (GS) $740.82 3.54%
Nike Inc. (NKE) $78.63 3.31%
3M Co. (MMM) $158.44 2.84%
Boeing Co. (BA) $230.21 2.56%
Walt Disney Co. (DIS) $118.90 2.44%
Dow Jones - Fallers
Verizon Communications Inc. (VZ) $44.31 -1.58%
Walmart Inc. (WMT) $96.87 -1.12%
Coca-Cola Co. (KO) $70.13 -0.87%
Walgreens Boots Alliance, Inc. (WBA) $12.07 -0.54%
Amgen Inc. (AMGN) $293.70 -0.29%
Procter & Gamble Co. (PG) $158.47 -0.11%
S&P 500 - Risers
Ipg Photonics Corp. (IPGP) $82.20 9.13%
Celanese Corp. (CE) $48.39 8.01%
Alaska Air Group Inc. (ALK) $58.98 7.67%
Norwegian Cruise Line Holdings Ltd (NCLH) $24.93 7.41%
Mohawk Inds Inc. (MHK) $132.71 7.29%
American Airlines Group (AAL) $13.55 7.16%
Carnival Corp. (CCL) $31.14 7.02%
Apache Corp. (APA) $21.64 7.00%
Intel Corp. (INTC) $24.80 6.87%
Delta Airlines Inc. (DAL) $61.46 6.47%
S&P 500 - Fallers
Intuit Inc. (INTU) $662.66 -4.41%
CSX Corp. (CSX) $34.58 -3.60%
Kroger Co. (KR) $69.00 -3.35%
Cencora Inc (COR) $293.97 -3.31%
McKesson Corp. (MCK) $686.40 -2.92%
Monster Beverage Corp (MNST) $62.79 -2.74%
Cardinal Health Inc. (CAH) $148.09 -2.41%
AT&T Inc. (T) $28.87 -2.26%
CME Group Inc. (CME) $269.52 -2.04%
Costco Wholesale Corp. (COST) $958.54 -1.96%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $4.73 10.00%
American Airlines Group (AAL) $13.55 7.16%
Intel Corp. (INTC) $24.80 6.87%
Sirius XM Holdings Inc (SIRI) $23.44 6.57%
J.B. Hunt Transport Services Inc. (JBHT) $150.11 6.39%
Align Technology Inc. (ALGN) $149.57 5.71%
Tesla Inc (TSLA) $340.01 5.60%
Expedia Group Inc. (EXPE) $214.81 4.55%
DENTSPLY Sirona Inc. (XRAY) $14.66 4.34%
Liberty Global plc Series C (LBTYK) $11.80 4.24%
Nasdaq 100 - Fallers
Intuit Inc. (INTU) $662.66 -4.41%
CSX Corp. (CSX) $34.58 -3.60%
Monster Beverage Corp (MNST) $62.79 -2.74%
T-Mobile Us, Inc. (TMUS) $251.95 -2.37%
Costco Wholesale Corp. (COST) $958.54 -1.96%
O'Reilly Automotive Inc. (ORLY) $102.31 -1.55%
Workday, Inc. (WDAY) $221.27 -1.49%
Incyte Corp. (INCY) $85.00 -1.27%
Fiserv Inc. (FI) $138.88 -0.72%
KLA-Tencor Corp. (KLAC) $870.18 -0.66%
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