Who Won the U.S. Presidential Debate?

Federal Reserve Chairman Jerome Powell has dispelled any remaining uncertainty by signaling that the central bank is preparing to shift its monetary policy, effectively paving the way for imminent interest rate cuts.

His remarks triggered a rally in rate-sensitive assets and pushed the dollar towards the lowest close since July 2023.

“The time has come for policy to adjust. The direction of travel is clear,” Powell announced at the Jackson Hole Symposium on Friday in Wyoming.

Powell expressed increased confidence in inflation returning to the 2% target and highlighted a heightened focus on the labor market, noting that conditions are cooling.

The market found significant support in Powell’s indication the Federal Reserve has “ample room” to respond to any emerging risks.

Small-cap stocks emerged as clear winners following Powell’s speech on Friday, with the Russell 2000 index surging by 3% by midday trading in New York. Traders flocked to these companies, anticipating significant relief from the prospect of lower borrowing costs.

Regional banks, as tracked by the SPDR S&P Regional Banking KRE, were the brightest market spot, with the industry gauge rallying over 4.5%. All of its 141 constituents showed a positive performance.

In contrast, large-cap indices maintained their gains from the market open, showing only little reaction to Powell’s remarks.

In the forex market, the dollar extended its decline, falling by 0.7% and heading toward its fifth negative weekly close with the sharpest decline since mid-November 2023. The decline in Treasury yields weighed on the greenback.

Commodities rallied, with gold up over 1.1% setting fresh all-time highs, and silver soaring 2.5%. Crude oil also surged, up 2.4%, while copper gained 1.7%.

Bitcoin BTC/USD rose 2.25% to $61,863.

Friday’s Performance In Major U.S. Indices, ETFs

Major Indices Price 1-day %chg Russell 2000 2,214.91 3.0% Nasdaq 100 19,605.24 0.6% Dow Jones 40,948.96 0.6% S&P 500 5,602.01 0.6% Updated at 1:00 p.m. ET

According to Benzinga Pro data:

The SPDR S&P 500 ETF Trust SPY was 0.5% higher to $559.11.

was 0.5% higher to $559.11. The SPDR Dow Jones Industrial Average DIA rose 0.6% to $409.93.

rose 0.6% to $409.93. The tech-heavy Invesco QQQ Trust Series QQQ rose 0.5% to $477.32.

rose 0.5% to $477.32. The iShares Russell 2000 ETF IWM rallied 3% to $220.06.

rallied 3% to $220.06. The Real Estate Select Sector SPDR Fund XLRE outperformed, by 1.6%. The Consumer Staples Select Sector SPDR Fund XLP lagged, down by 0.2%.

Friday’s Stock Movers

Restaurant chain Cava Group Inc. CAVA rallied 23%, after upbeat financial results last quarter.

rallied 23%, after upbeat financial results last quarter. Other stocks reacting to earnings were BILL Holdings, Inc. BILL down over 5%; Buckle, Inc. BKE up 6.9%; Ross Stores, Inc. ROST up 1.3%; Ubiquiti Inc. UI up 5.9 and Workday, Inc. WDAY , up over 11%.

down over 5%; up 6.9%; up 1.3%; up 5.9 and , up over 11%. Roku Inc. ROKU rallied over 12% after Guggenheim upgraded the stock from Neutral to Buy.

rallied over 12% after Guggenheim upgraded the stock from Neutral to Buy. Mortgage-sensitive Redfin Corp. RDFN rallied over 20%.

rallied over 20%. Within regional banks, Eagle Bancorp, Inc. EGBN , United Community Banks Inc. UCB and Valley National Bancorp VLY were the strongest performers, up 10.5%, 9.6% and 8.5%, respectively.

• Powell Removes ‘Any Uncertainty’ Around September Rate Cuts In Jackson Hole Speech: Economists

Don’t miss the opportunity to dominate in a volatile market at the Benzinga SmallCAP Conference on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile.

Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you’re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!

This image was created using artificial intelligence MidJourney

• Read More