Stocks finished mixed but resilient as Chair Powell used Jackson Hole to nudge the door open to a September rate cut. That helped flip sentiment on Friday, sending the Dow to a record close and leaving the S&P modestly higher on the week while the Nasdaq slipped as mega-cap tech lagged. Yields eased across the curve, volatility retreated, and cyclicals, especially energy, industrials, and real estate, led.
Weekly Index Performance: S&P 500 6,466.91, +0.3% for the week. Nasdaq Composite 21,496.53, -0.6%. Dow Jones Industrial Average 45,631.74, +1.5%.
Powell at Jackson Hole signaled that risks have shifted and the Fed is open to cuts if labor softens further. Markets interpreted that message as supportive, prompting a broad Friday rally and easing in yields.
Energy, real estate, industrials, and materials led the week, helped by lower yields and a more cyclical tone. Information technology and communication services lagged as some mega-cap names paused despite continued AI enthusiasm.
The week ahead included new home sales, durable goods, GDP, jobless claims, PCE inflation, and a heavy earnings slate led by Nvidia.