S&P 500 Set to End Losing Streak, Dow Soars 800 Points After Powell Boosts September Rate-Cut Bets

03:58 PM EDT, 08/22/2025 (MT Newswires) -- US equity indexes jumped on Friday, with the S&P 500 likely to break its five-day losing streak and the Dow Jones Industrial Average surging over 800 points after Federal Reserve Chair Jerome Powell signaled a dovish policy pivot.

The Dow Jones Industrial Average traded 1.9% higher at 45,630.4, after touching a record 45,732.11 earlier in the session. The Nasdaq Composite jumped 1.9% to 21,500.7, and the S&P 500 climbed 1.5% to 6,465.9.

All sectors except consumer staples rose intraday. Consumer discretionary was the standout gainer, followed by energy and communication services.

"In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside -- a challenging situation," Powell said in prepared remarks at the Kansas City Fed's annual Economic Policy Symposium in Jackson Hole, Wyoming "With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

Earlier in August, the Bureau of Labor Statistics reported non-farm payrolls rose by 73,000 in July, versus consensus for a 104,000 increase. June was revised down by 133,000 jobs and by 125,000 for May. Labor supply and labor force participation growth have softened, Powell noted.

The odds of a 25-basis-point cut in interest rates in September jumped to 85% by Friday afternoon, up from 75% a day ago, according to the CME FedWatch Tool.

US Treasury yields fell, with the 10-year yield down 7.1 basis points to 4.26% and the two-year rate 9.6 basis points lower at 3.7%.

Gold futures jumped 1% to $3,415.6 per ounce, while silver futures advanced 2.3% to $38.96.

The ICE US Dollar Index slumped 0.9% to 97.74.

West Texas Intermediate crude oil futures rose 0.5% to $63.84 a barrel.

In company news, shares of Enphase Energy (ENPH) advanced 9.8% ahead of the close, the top performer on the S&P 500, after the company reported that all its products subject to the European Union's Radio Equipment Directive Article 3.3 cybersecurity requirements have been certified to be compliant with the rules.

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