Stocks surge on Powell's speech, Trump says US government will take a stake in Intel

Market Performance & Analysis - The Dow Jones Industrial Average soared by 860 points, the S&P 500 rose by more than 15%, and the tech-heavy NASDAQ increased by nearly 2% following Jerome Powell's speech at Jackson Hole [1] - The Russell 2000 small-cap index showed significant gains, up 37% for the day and the week, indicating a positive response to the prospect of rate cuts [1] - The 10-year Treasury yield dropped by seven basis points to 426%, and the 30-year yield decreased by four basis points to 488%, signaling risk-on behavior in the markets [1] - Ten out of eleven sectors experienced gains, with consumer discretionary (retail) leading at a 3% increase, followed by energy, materials, industrials, and financials [1] Federal Reserve & Monetary Policy - Fed Chair Jerome Powell's speech at Jackson Hole opened the door to a potential rate cut in September, influencing market sentiment [1][2] - The market is pricing in a near certainty of a 25 basis point rate cut next month, although this could change based on upcoming inflation reports [1] - The Fed has adopted a long-term inflation target of 2%, dropping the average inflation targeting [1] - There is anticipation of a September revision to the jobs report, potentially showing a significant downward adjustment of 550,000 to 800,000 jobs, which may be influencing the Fed's stance [2] Company Specific News - President Trump suggested the US government should take a 10% stake in Intel, equating to about $10 billion [4] - Nvidia is working with the US government to develop a follow-up to its H20 chip for China, while also halting some H20 production due to security concerns raised by the Chinese government [5] - Apple is in early discussions to use Google Gemini in a revamped version of Siri [7] Crypto Market - Ethereum led crypto gains following Fed Chair Powell's speech, with risk appetite rising and digital assets showing strength [6] - Stable coin issuers are being eyed as potential top buyers of US Treasury bills, especially after the passage of the Genius Act, which creates guard rails around the stable coin industry [8]