Dow Soars to Record High After Powell Hints at Rate Cuts

U.S. equities surged sharply on August 22 as Federal Reserve Chair Jerome Powell signaled potential interest rate cuts in the latter half of the year. The Dow Jones Industrial Average rallied 846 points to close at an all-time high of 45,631.74, while the S&P 500 and Nasdaq Composite gained 1.52% and 1.88% respectively.

Powell's remarks at the Jackson Hole symposium suggested a pivot from restrictive monetary policy, sparking a broad market rebound after five consecutive days of S&P 500 declines. Technology stocks, previously battered by valuation concerns and inflation worries, led the recovery.

Markets now price in a 91% probability of a 25-basis-point rate cut at the September 17 FOMC meeting. The dovish shift comes as investors reassess risk assets across traditional and digital markets.