Fed Chair Powell emphasized that the Federal Reserve is “well-positioned” on inflation, growth, employment, and overall policy—language that markets interpreted as a signal of confidence in the current stance. While acknowledging that inflation remains elevated, Powell noted that underlying inflation would already be near 2% were it not for tariff effects, which he described as a one-time price adjustment rather than a persistent inflation driver. If tariffs do not increase further, he suggested, inflation should continue drifting back toward target.
His remarks helped lift equities after an early pullback. By the close, the Dow Jones Industrial Average finished at a new record high, as did the Russell 2000 small-cap index, while the S&P 500 ended just shy of its own record, reflecting renewed risk appetite following Powell’s balanced and reassuring tone
- Dow industrial average rose 497.46 point or 1.05% to 48057.75. The all-time record high close reached on November 12 was at 48254.82.
- S&P index rose 46.17 points or 0.67% to 6886.68. That is just short of its record high reached on October 29 at 6890.59.
- NASDAQ index rose and 77.67 points or 0.33% at 23654.16. Its all-time high close reached on October 29 is at 23958.47.
- Russell 2000 rose 33.36 points or 1.32% at 2559.60
The US indices close higher after the Fed rate cut
