Stock market today: Dow, S&P 500, Nasdaq surge as Powell opens door to September rate cut

US stocks pushed higher on Friday as Federal Reserve Chair Jerome Powell opened the door for a September rate cut during his highly anticipated speech at Jackson Hole.

The Dow Jones Industrial Average (^DJI) rose nearly 1.5%, while the S&P 500 (^GSPC) moved up about 1.2%, and the tech-heavy Nasdaq Composite (^IXIC) climbed 1.3% — all on the heels of s downbeat day for stocks.

The US benchmark indexes are on track for a weekly loss after tech stocks got beaten up by AI trade doubts.

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Fed chair Powell opened the possibility of the central bank lowering interest rates in September on Friday, saying in his speech that "the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

With the speech touching both on the economic outlook and the Fed's new policy framework, Powell still noted that risks from inflation remain "tilted to the upside," saying that tariff-related inflation pressures "are now clearly visible."

His remarks shook up rate-cut bets, which had been waning after a weak monthly jobs report. Traders are pricing in about 87% odds of a cut on Friday compared to 70% earlier in the morning and 85% a week ago.

The White House was watching as closely as Wall Street as President Trump continues to push the Fed and Powell to lower rates. Trump this week opened a new front in his public pressure campaign, with a call for the resignation of Fed governor Lisa Cook for alleged mortgage fraud.

On the earnings front, Zoom (ZM) stock popped Friday after reporting an AI boost, and Ross Stores (ROST) jumped as shoppers sought discounts amid tariffs. Intuit (INTU) and Workday (WDAY), meanwhile, slid.LIVE14 updates

4 mins ago

Laura Bratton

Powell opens door to September rate cut, says economic outlook 'may warrant' change in Fed's stance

Yahoo Finance's Myles Udland and Jennifer Schonberger report:

Read more about Powell's speech here. 22 mins ago

Grace O'Donnell

Watch Fed Chair Powell's Jackson Hole speech live

Federal Reserve Chair Jerome Powell began speaking in Jackson Hole, Wyo., on Friday, where he is delivering what is expected to be his final speech at the annual gathering of central bankers, policymakers, and economists.

You can watch his remarks live below or on our livestream here:

Investors will examine Powell's remarks for clues about the state of the economy and the potential for interest rate cuts next month. The central bank is grappling with whether to hold interest rates steady in September to counter inflation or lower rates in light of weaker labor market data.

Pressure from the Trump administration to slash rates has also ramped up in recent months, with President Trump regularly calling on Powell to ease Fed policy.

Additionally, Powell is expected to describe changes to the central bank’s policy framework. The Fed is expected to drop its average inflation targeting policy, which sets an inflation rate goal for the Fed to achieve over the long run. It was put in place pre-pandemic, when inflation ran low and Fed officials wanted to avoid deflation.

Read more here about Powell's speech. 26 mins ago

Laura Bratton

Nvidia talking to Trump admin. about new China chip

Yahoo Finance's Dan Howley reports:

Nvidia shares fell nearly 1% Friday morning, on track for a nearly 4% weekly loss.

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Read the full story here. 31 mins ago

Laura Bratton

Stocks push higher at the open

US stocks rose at the open on Friday as investors awaited Federal Reserve Chair Jerome Powell's highly anticipated speech in Jackson Hole at 10 a.m. ET.

The Dow Jones Industrial Average (^DJI) rose around 0.6%, while the S&P 500 (^GSPC) moved up about 0.3%, and the tech-heavy Nasdaq Composite (^IXIC) inched up nearly 0.1% — with those gains coming after another downbeat day for stocks Thursday.

The US benchmark indexes are still on track for a weekly loss after tech stocks got beaten up by AI trade doubts.

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Grace O'Donnell

Nio stock rises after the Tesla rival unveils affordable SUV

Chinese electric vehicle maker Nio (NIO) revealed its new ES8 SUV on Thursday, sending US-listed shares of the Tesla (TSLA) rival 5% higher in premarket trading on Friday. The stock was the No. 1 trending ticker on Yahoo Finance on Friday morning.

The SUV is one of Nio's most affordable yet, with prices starting at 308,800 yuan (approximately $43,000) with a battery subscription plan. The plan allows customers to pay lower upfront costs for the vehicle and then upgrade batteries for a monthly fee.

Deliveries are scheduled to begin in late September. Today at 12:20 PM UTC

Grace O'Donnell

US sectors in spotlight ahead of Fed's Jackson Hole gathering

Federal Reserve Chair Jerome Powell's speech in Jackson Hole, Wyo., today is expected to provide investors with a signal on whether an interest rate cut is coming next month, which could have wide-ranging implications for many parts of the economy.

Reuters broke down how some of the most rate-sensitive stocks have fared since the Fed kicked off its rate-cutting cycle in September 2024:

Read more here. Today at 11:51 AM UTC

Jenny McCall

Premarket trending tickers: Intuit, WorkDay and AMD

Here's a look at some of the top stocks trending in premarket trading:

Intuit Inc. (INTU) stock fell 6% before the bell on Friday after forecasting first-quarter revenue growth below analysts' estimates on Thursday.

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Workday's (WDAY) stock dropped on Friday before the bell after the software company raised its full-year subscription revenue forecast on Thursday, but a forecast in line with expectations for the current quarter pushed the human resources software provider’s shares down.

AMD (AMD) shares fell 1% in premarket trading following the news that Nvidia (NVDA) has told partners to halt work on H20 chip for China. Today at 11:50 AM UTC

Grace O'Donnell

Zoom stock jumps as Enterprise revenue accelerates

Shares of Zoom (ZM) jumped 5% in premarket trading on Friday after the communications software provider posted earnings that beat Wall Street estimates and raised its full-year outlook.

Zoom CEO Eric Yuan highlighted artificial intelligence as a driver of its strong quarter, with its AI agents underpinning profit growth.

The company posted earnings per share of $1.16, compared to Wall Street analyst estimates for $0.72, per S&P Global Market Intelligence. Revenue rose 5% to $1.2 billion, bolstered by 7% growth in Enterprise revenue. The company's monthly churn rate remained flat year over year at 2.9%.

Despite Friday's gain, the stock is still down 10% year to date, underperforming the S&P 500's (^GSPC) 8% gain. Today at 11:34 AM UTC

Jenny McCall

Good morning. Here's what's happening today.

Economic data: Federal Reserve Chair Jerome Powell speaks at the Jackson Hole Economic Symposium

Earnings: BJ's Wholesale (BJ), Buckle (BKE)

Here are some of the biggest stories you may have missed overnight and early this morning:

The stage is set for Powell's final Jackson Hole speech

Meta, Google sign $10 billion cloud services megadeal

Nvidia tells partners to halt work on H20 chip for China, stock falls

Traders need a green light from Powell to keep stocks rallying

Nvidia in talks with US over a new chip for China: CEO Huang

Nike eyes China growth, with outdoor sports revamp at the center

Musk tried to enlist Zuckerberg to help fund his bid for OpenAI Today at 11:30 AM UTC

Karen Friar

Meta's hiring freeze is a Meta problem, not an AI problem

Meta's (META) absurd AI job offers were a way to overcome its disadvantages, a sign of desperation rather than a show of strength, Yahoo Finance's Hamza Shaban says in a takeaway from today's Morning Brief.

Read more here. Today at 11:00 AM UTC

Karen Friar

Nvidia stock slides as company freezes H20 work, navigates China pressures ahead of earnings

Shares in Nvidia slid in premarket after the chipmaker reportedly told its suppliers to halt work on production of its China-tailored H20 AI chip.

Nvidia CEO Jensen Huang said Friday that the AI bellwether is in talks with the Trump administration over a potential new semiconductor — the "B30A" — designed for Chinese techs to use.

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Nvidia told component suppliers such as Foxconn (2317.TW, HNHPF), Samsung Electronics (SSNLF, 005930.KS), and Amkor Technology (AMKR) to suspend work on the H20, per The Information and Reuters.

Those orders came after Beijing urged Chinese companies to avoid using Nvidia's AI chip. The move to restrict sales was prompted by what China deemed "insulting" remarks from US commerce secretary Howard Lutnick.

Huang was asked about a possible “B30A” semiconductor for AI data centers for China while on a visit to Taiwan on Friday. The Nvidia CEO was there to meet key partner Taiwan Semiconductor Manufacturing Corp. (TSM), the world's biggest chip manufacturer.

“I’m offering a new product to China for ... AI data centers, the follow-on to H20,” Huang said, according to Reuters.

However, he added: "That’s not our decision to make. It’s up to, of course, the United States government. And we’re in dialogue with them, but it’s too soon to know.”

Nvidia has increasingly found itself having to navigate trade tensions between the US and China amid President Trump's reshaping of tariff policy.

With the chipmaker set to report second-quarter earnings next week, a key question for Wall Street is whether China will be part of its outlook.

"If NVDA were to include China in its guidance, we believe it would contribute an incremental $2-3 billion in revenue," KeyBanc Capital Markets analyst John Vinh wrote in a recent note. Today at 9:40 AM UTC

Karen Friar

Meta said to sign over $10 billion cloud services deal with Google

Google has struck a six-year cloud computing deal with Meta Platforms (META) worth more than $10 billion, according to reports late Thursday. It's the Alphabet-owned (GOOG, GOOGL) search giant's second big agreement recently, after one with OpenAI (OPAI.PVT).

Alphabet shares rose over 1% after the reports. Meanwhile, Meta stock ticked slightly higher to put the megacaps on track for an upbeat Friday to end a rough week for Big Techs.

Reuters reports:

Read more here. Today at 9:20 AM UTC

Karen Friar

Bond market rate-cut bets face a Powell reckoning at Jackson Hole

Jerome Powell’s Jackson Hole speech — slated for 10 a.m. ET — has been the focal point for the bond market this week, for good reason. In recent years, Powell has used the occasion to make market-moving policy news, with investors zeroing in on whether Fed chair pushes back on the current pricing for rate cuts.

Bloomberg reports:

Read more here. Today at 1:49 AM UTC

Rian Howlett

Nvidia puts a pause on production of Chinese H20 chips

Bloomberg reports:

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Read more here.

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