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The Dow finished Fridayâs session with a monster move, jumping 846 points to close at a record high of 45,631.74, after Federal Reserve Chair Jerome Powell said the central bank could start cutting rates next month.
That comment came during his speech at the Jackson Hole symposium and triggered a flood of trades across every major sector.
The gains were immediate. The S&P 500 ended at 6,466.91, up 1.52%, just shy of its all-time high. The Nasdaq Composite closed at 21,496.53, up 1.88%, fueled by massive inflows into tech stocks.
According to data from CNBC, Powellâs words led to a full-blown rally that pushed indexes to levels traders hadnât seen before.
The minute Powell opened the door to rate cuts, the big tech names took off. Nvidia rose 1.7%, Meta Platforms gained over 2%, and both Alphabet and Amazon were up more than 3%. Tesla shares ran hardest, rallying 6% by the closing bell. Traders were pricing in a lower-rate environment and reloading on risk.
The U.S. dollar got slammed, falling 1%, as expectations of looser policy pressured the currency. The euro jumped to $1.1728, with a session high of $1.1742, its strongest point since July 28. The yen also strengthened as the dollar dipped to 146.77, down 1.08%.
Other currencies moved in lockstep; the British pound went up 0.86% to $1.3527, and the Australian dollar rose 1.14% to $0.6492.
Gold benefited too. Spot gold increased 1.1% to $3,373.89 an ounce, while U.S. futures closed at $3,418.50, also 1.1% higher. With the dollar weakening, gold looked cheaper to non-dollar buyers.
Silver popped 2.2% to $39.01, platinum gained 0.7% to $1,362.90, and palladium edged up 1.4% to $1,125.53. Metals traders jumped in fast, betting on inflation protection.
Bitcoin was part of the action too. It rose 4.10% Friday to $117,035, lifted by the broader risk rally and softening dollar. Just a week earlier, it had hit a new all-time high, trading close to $125,000, after breaking $124,496 on August 14.
But that was followed by a fast 10% correction to $111,658. Even so, that drop was smaller than earlier ones. In July, bitcoin dropped 9% after peaking at $123,194. Earlier drawdowns this year were sharper, both January and May selloffs pushed losses past 30%.
Still, long-term bitcoin holders arenât shaken. Some of them say dips like this are normal. âDrawdowns of 30% are a regular thing in a bull cycle,â said one longtime trader.
And historically, theyâve survived worse. Bitcoin has crashed 70% multiple times. But over the last three years, itâs up 455%. In five years, 913%. And in a decade, 51,600%.
Bitcoinâs performance during market chaos has been noticed. When President Donald Trump announced fresh tariffs in April, stocks tumbled. Bitcoin didnât. It stayed over $80,000 most of the year and only slipped under $75,000 briefly. That resilience is why institutions are still piling in.
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