Stocks Surge as Powell Signals Dovish Shift

Benzinga

Jerome Powell shocked Wall Street with a dovish Jackson Hole speech, warning of rising risks to employment and hinting at possible rate cuts if growth keeps slowing. Markets reacted sharply: futures now price in a 91% chance of a September Fed cut, up from 71% earlier. Treasury yields and the dollar fell, while tech stocks like Coinbase, ARM, Tesla, and Intel all gained over 3%.

Transcript

00:00Jerome Powell just shocked Wall Street and stocks are ripping after his dovish shift.

00:05Instead of focusing on inflation, he warned that downside risks to employment are rising,

00:10and hinted that the Fed may cut rates if the growth continues slowing.

00:14Markets went wild. Futures now price in a 91% chance of Fed rate cut in September,

00:20up from 71% before his speech. Treasury yields tumbled, the dollar dropped,

00:26and tech stocks exploded. Coinbase, ARM, Tesla, and Intel all jumped over 3% just today.

00:33This was one of Powell's most dovish signals yet. So do you think the Fed is moving too fast,

00:38or is this the lifeline markets needed?

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