--- title: Powell Signals September Rate Cut, Markets Hit Record Highs description: U.S. markets surged as Powell signaled possible September rate cuts. Dow hit a record, tech stocks rebounded, and investors eye a cautious Fed easing path. image: https://resources.quantel.ai/hubfs/iStock-2205336262.jpg --- [![quantel_mainlogo](https://resources.quantel.ai/hubfs/quantel_mainlogo.png)](https://www.quantel.ai/) - [For Investors](https://www.quantel.ai/investors/) - [For RIAs](https://www.quantel.ai/rias/) - [Resources](https://www.quantel.ai/resources/) - [About](https://www.quantel.ai/about/) [Get Started Today](https://myaccount.quantel.ai/) [Get Started Today](https://myaccount.quantel.ai/) false # Powell Signals September Rate Cut, Markets Hit Record Highs [BACK](https://resources.quantel.ai/) By   Jerry Yuan Aug 23, 2025, 1:47:37 AM | 1 mins [![](https://resources.quantel.ai/hubfs/Social_Icons/linkcopy_icon.svg)](https://resources.quantel.ai/?rel=author) #### Dow Hits Record High, S&P 500 and Nasdaq Surge on Hopes of Easier Policy Markets closed the week on a strong note as Federal Reserve Chair Jerome Powell signaled that the central bank may begin easing monetary policy as early as next month. The Dow surged 846 points to a record close above 45,600, while the S&P 500 and Nasdaq each rallied nearly 2%, with technology names leading the rebound after a difficult week.   #### Powell’s Notable Shift Powell’s remarks at Jackson Hole Symposium marked a notable shift in tone. For much of the past two years, inflation was the predominant concern, especially as tariffs have pressured consumer prices. Now, the **Fed views risks as more balanced, with the labor market showing clear signs of softening.** Job gains have slowed to an average of just 35,000 over the past three months, and **unemployment is at 4.2%.** Powell described this as a “curious balance,” with both supply and demand for workers weakening simultaneously, suggesting rising downside risks to employment. #### Market Reacts Markets interpreted the speech as a green light for easing. **Futures now show more than 90% odds of a September rate cut**, with expectations for 50 basis points of reductions before year-end. Powell avoided committing to a pace but made clear that restrictive policy will likely be adjusted soon. In the near term, the equity market should benefit from easier financial conditions, particularly rate-sensitive technology and growth stocks. **Friday’s rally was broad-based, extending beyond technology to include small caps and cyclical sectors**. If the Fed delivers in September, momentum could carry into the fall, though seasonal volatility in September and October remains a risk. #### Outlook The outlook is not without complications. **Tariff-driven inflation is visible** in the data, and Powell stressed the Fed would not allow temporary shocks to evolve into a lasting problem. That implies a gradual, data-dependent easing cycle rather than aggressive cuts. For now, the most likely outcome is a 25 basis point reduction in September followed by one or two more moves this year, contingent on incoming employment and inflation data. 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