New York stock exchanges made significant gains as trading closed on Friday, buoyed by an indication from Federal Reserve Chairman Jerome Powell that the US central bank would soon announce an interest rate cut.
“The time has come for policy to adjust,” Powell said at the annual gathering of central bankers in the town of Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
His announcement caused share prices on Wall Street to rally significantly. The Dow Jones Industrial Average rose by 1.1% to close at 41,175.08 points, while the broader S&P 500 index climbed 1.2% to finish at 5,634.61 points. The Nasdaq composite – mainly tech stocks – went up by 1.5%, ending at 17,877.79 points.
Shares in chip maker Nvidia rose by over 4%, and those of electric carmaker Tesla went up by almost 5%.
The price of shares in Delta Air Lines increased by over 3% following news of the departure of COO Mike Spanos. Spanos had announced earlier in the year that he intended to leave the company. Still, the timing of his exit is significant: about a month and a half ago, Delta was forced to cancel thousands of flights due to a massive computer glitch in its Windows system. That cost the airline over half a billion dollars, according to estimates.
Apple’s shares went up by 1% in light of reported plans to unveil new iPhones on 10 September. The new phones are reportedly to be sold from 20 September, although an Apple spokesperson refused to comment on the rollout date.
Apple’s future success hinges to a large extent on the new iPhone, following recent struggles with disappointing sales.
