Powell's September Rate Cut Indication Boosts Dow to All-Time High, Nasdaq Rises 2%

Market Reaction to Powell's Remarks: Federal Reserve Chair Jerome Powell's comments at Jackson Hole led to a significant market rally, with the Dow reaching a new record and major indices like the Nasdaq and S&P 500 also seeing substantial gains.

Sector Performance: The rally saw ten of the eleven S&P sectors trading higher, particularly driven by Consumer Discretionary and Real Estate, while Consumer Staples lagged behind.

Implications for Monetary Policy: Powell indicated that changing risks might necessitate a policy adjustment, which markets interpreted as a potential signal for a rate cut in September, increasing the odds from 71% to approximately 93%.

Upcoming Economic Indicators: Traders are now focused on the final August jobs report as it will be crucial for confirming any potential policy changes before the Fed's September meeting.