US stocks closed higher on Friday, August 23rd, following Fed Chair Jerome Powell’s indication of a potential interest rate cut in September. Powell’s comments, citing reduced inflation risks, sparked a surge in market sentiment. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced gains, driven by strong performances from key players like Nvidia, Apple, and Tesla. Financial stocks reached an all-time high, further reflecting market confidence. All three major indexes concluded the week with significant advancements.
Meanwhile, Baker Hughes reported that the total number of active U.S. oil rigs remained stable at 483 this week. In his Jackson Hole speech, Fed Chair Jerome Powell hinted at an imminent interest rate adjustment, emphasizing that future decisions will be data-driven. However, he refrained from specifying the timing or scale of the adjustment. All 11 primary sectors of the S&P 500 ended the session in positive territory, with real estate stocks leading the gains. The Dow Jones Industrial Average surged by 1.14%, closing at 41,175.08. The S&P 500 ended the day higher by 1.15%, closing at 5,634.61, and the Nasdaq Composite rose by 1.47%, concluding the session at 17,877.79.
On Monday, Asian markets exhibited mixed performance. Japan’s Nikkei 225 closed lower by 0.94% at 38,058.00, led by losses in the Transportation Equipment, Services, and Electrical/Machinery sectors. Australia’s S&P/ASX 200 gained 0.76%, closing at 8,084.50, boosted by gains in the Telecoms Services, Financials, and Energy sectors. India’s Nifty 50 gained 0.76%, closing at 25,010.60, and the Nifty 500 closed higher by 0.61% at 23,561.75. China’s Shanghai Composite was up 0.04%, ending the session at 2,855.52, while the Shenzhen CSI declined by 0.09%, closing at 3,324.22. Hong Kong’s Hang Seng ended the session higher by 1.06% at 17,798.73.
European markets opened with slight declines. At 06:15 AM ET, the European STOXX 50 index dropped by 0.08%. Germany’s DAX fell by 0.22%. France’s CAC gained 0.15%. UK markets were closed for the Bank Holiday.
Commodities saw significant movement. Crude Oil WTI traded higher by 1.86% at $76.27/bbl, and Brent was up 1.69% at $79.50 bbl. Oil prices rose due to concerns over the escalating Gaza conflict, potentially disrupting regional oil supplies. This followed gains from Friday driven by optimism over U.S. interest rate cuts, boosting global economic and fuel demand outlook. Natural Gas fell by 1.01% to $2.158. Gold traded higher by 0.63% at $2,562.50, Silver gained 1.31% to $30.6555, and Copper rose by 0.69% to $4.2745.
US Futures at 06:15 AM ET: Dow futures were up 0.07%, S&P 500 futures gained 0.18%, and Nasdaq 100 Futures rose 0.23%.
The U.S. dollar index gained 0.05% to 100.77, the USD/JPY was down 0.24% to 144.01, and the USD/AUD rose 0.22% to 1.4763. The U.S. dollar weakened, hitting a three-week low against the yen, as Fed Chair Powell’s dovish shift contrasted with Bank of Japan Governor Ueda’s hawkish stance. The dollar also hovered near multi-month lows against the euro and sterling, reflecting differing central bank policies and expectations of rate cuts in the U.S.
