US stocks post solid gains as Powell endorses rate cut
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Traders work on the floor of the New York Stock Exchange, during morning trading in New York on Aug 23.
PHOTO: AFP
NEW YORK - Wall Street stocks powered higher on Aug 23, after Federal Reserve chairman Jerome Powell signalled support for cutting interest rates and that inflation is under control.
“The time has come for policy to adjust,” Mr Powell said, at a widely-anticipated address in Wyoming, adding further to expectations that the central bank will cut interest rates in September.
US stocks spent the whole session in positive territory, pushing higher just after the address and ending near session highs.
The Dow Jones Industrial Average finished up 1.1 per cent at 41,175.08.
The broad-based S&P 500 climbed 1.2 per cent to 5,634.61, while the tech-rich Nasdaq Composite Index advanced 1.5 per cent to 17,877.79.
All three indices advanced for the week.
“Powell confirmed what was already known - the Fed will cut interest rates in September,” said Oxford Economics, noting that “inflation is now taking a backseat to the labour market.”
Elsewhere, new US home sales jumped more than 10 per cent in July after declines the prior two months, topping analyst estimates amid a retreat in mortgage rates.
Semiconductor companies were among the winners on Aug 23, with Intel, AMD and Nvidia all gaining at least 2 per cent.
But financial management company Intuit sank 6.8 per cent, with analysts pointing to profit taking and some disappointment over the company’s outlook. AFP
