Stock Market Conclusion: Dismissal of Powell, All-Time High for Dow Jones

Stock Markets Rally After Fed Chair's Speech

The stock markets experienced significant movements during trading on Friday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all posting gains. The rally was largely attributed to a speech delivered by Jerome Powell, the US Federal Reserve Chair, at the central bank conference in Jackson Hole.

In his speech, Powell hinted at a potential shift in monetary policy, stating that the labor market stability allows the Fed to "proceed cautiously" when considering a change. This message was interpreted as a clear signal for a potential policy shift, causing markets to price in a high probability of two 0.25 percentage point rate cuts by the end of the year.

The tech-heavy Nasdaq 100 gained 1.54% to 23,498 points, while the Dow Jones Industrial Average hit a record high of 45,757 points during trading. The broader S&P 500 climbed 1.52% to 6,466 points after Powell's speech.

Zoom, Intel, Boeing, Intuit, and Workday were among the companies that saw significant movements in their stock prices. Zoom's stock gained 12.7% after an impressive quarterly report and positive outlook for annual revenue growth. Intel's stock surged 5.5% following an agreement with the US government for a 10% stake, which includes billions in subsidies. Boeing's stock gained 2.5% due to rumors of a massive deal with China for the delivery of 500 aircraft.

However, not all companies saw gains. Intuit's stock fell 5.0% despite delivering solid numbers, as the outlook failed to meet analysts' raised expectations. Workday's stock dropped 2.8% despite good results, due to concerns about new AI applications potentially threatening its business model. In response to these concerns, Workday announced the strategic acquisition of AI specialist Paradox.

The movements in the stocks of these companies were influenced by various factors such as quarterly reports, government agreements, and market rumors. The door for a first rate cut as early as September appears to be wide open, according to Powell's speech. Markets are now eagerly awaiting the Fed's decision on monetary policy.

The dpa-AFX news agency provided material for the report on the stock movements of these companies. For the latest updates on the markets, stay tuned to dpa-AFX.