Dow soars more than 800 points into record territory as Powell hints at rate cut

(CNN) — Stocks surged higher on Friday as Federal Reserve Chair Jerome Powell signaled an interest rate cut could be on the way.

The Dow rose 860 points, or 1.93%. The broader S&P 500 gained 1.6% and the tech-heavy Nasdaq Composite gained 1.95%.

The Dow was on track to close at its first record high since December 4.

Investors across the globe were attuned to Powell’s speech at an annual central banking forum in Jackson Hole, Wyoming. Markets cheered his remarks that a shift in interest rate policy may be needed — though any rate cut would be in response to slowing growth in the labor market.

“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said.

“Downside risks to employment are rising,” he said. “And if those risks materialize