Markets Rally On Powell’s Sept Cut Hint

Market Performance & Trends - The Russell 2000 showed significant gains, hovering around 4% higher after traders digested comments from the Fed Chair [2] - The Dow Jones Industrial Average was up 19%, or 846 points, closing at 45631, nearing a record not seen since December [7] - The S&P 500 increased by 15%, closing at 6466, although off its highs for the day [7] - The Nasdaq was up 19%, driven by tech stocks [7] - The KBW Bank Index surged by 32%, reaching its highest close since 2022, influenced by signals from Jay Powell regarding potential rate cuts [9][10] - Most sectors were in the green, with consumer staples being an exception [8] Federal Reserve & Interest Rates - The market reacted strongly to Fed Chair Jay Powell's speech, with stocks moving into positive territory [2] - The speech was heavily scrutinized for its implications on the dual mandate and the Federal Reserve's future economic actions [4] - Markets may be overly optimistic about potential rate cuts in September, as the speech contained hawkish elements and emphasized the need for labor market cooling without signaling urgent action [23] - The 10-year Treasury yield dropped significantly, more than 10 basis points, finishing the day at 369, following the Fed Chair's speech [22] Company Specific News - Intel shares surged, up 56%, following the announcement of a potential 10% equity stake by the US government [12][13] - Apple shares hit session highs after reports of discussions to use Google Gemini for Siri's voice assistant [13] - Intuit was the biggest decliner in the S&P 500, down about 51%, after a tepid forecast overshadowed a strong fourth-quarter report [16][17] - Workday shares declined, down about 14% year to date, as investors were disappointed by unchanged subscription revenue guidance [18][19] - The Weekend is negotiating $1 billion in financing backed by his music rights, including $500 million in senior debt, $250 million in junior debt, and $250 million in equity [31]