Dow Jones soars 918 points to record high as investors cheer Powell’s dovish pivot
NEW YORK: The Dow Jones Industrial Average surged to a record high Friday after Federal Reserve Chair Jerome Powell hinted the central bank may begin easing monetary policy as early as next month.
The Dow jumped 918 points, or 2%, to close at a new all-time high. The S&P 500 rose 1.6%, while the Nasdaq Composite gained 2%, reversing a week of sluggish performance in megacap tech stocks.
Powell’s remarks at the Fed’s annual symposium in Jackson Hole, Wyoming, suggested a shift in the central bank’s stance. “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said, citing “sweeping changes” in tax, trade, and immigration policies. He noted that the balance between the Fed’s dual mandate—full employment and price stability—was evolving.
Investor expectations for a 0.25 percentage-point rate cut in September soared to 91%, up from 75% earlier in the week, according to CME Group’s FedWatch tool.
“The bar is extremely high now for the Fed to leave rates unchanged in less than a month,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “It’s no surprise that markets reacted with glee.”
Tech stocks led the rally, with Tesla jumping 5%, and Meta, Alphabet, and Amazon each climbing more than 2%. Nvidia added 1.3%.
The rally helped major indexes recover most of their weekly losses. Both the Dow and S&P 500 are now on track for weekly gains, while the Nasdaq trimmed its earlier decline.
📊 Market Performance Summary (Friday, Aug. 22, 2025):
| Index/Stock | Change | % Gain | Notes |
| Dow Jones | +918 pts | +2.0% | All-time high |
| S&P 500 | — | +1.6% | Weekly advance |
| Nasdaq Composite | — | +2.0% | Cut weekly losses |
| Tesla | — | +5.0% | Led tech rally |
| Meta, Alphabet, Amazon | — | +2.0%+ | Strong gains post-Powell |
| Nvidia | — | +1.3% | Moderate uptick |
| Fed Rate Cut Odds | — | 91% | Up from 75% earlier in week |