Overview

• U.S. stocks logged their strongest day in months, led by small caps, with the Dow closing at a record and the S&P 500 and Nasdaq up roughly 1.5% to 1.9%.
• Treasury yields fell notably, with two‑year rates near 3.69% and the 10‑year around 4.25%, and the dollar weakened as traders priced in easing.
• CME FedWatch showed odds above 80% for a September rate cut after Powell’s Jackson Hole remarks, short of a firm commitment.
• Powell said the balance of risks has shifted toward employment even as tariff‑related pressures keep inflation risks elevated, keeping policy moves contingent on incoming data.
• Political pressure intensified as President Trump pushed for deeper cuts and threatened Fed Governor Lisa Cook, renewing concerns about central‑bank independence.