The stock market closed at record highs Friday after Federal Reserve Chair Jerome Powell sparked confidence in a September rate cut among Wall Street traders.

The Dow Jones Industrial Average rose more than 840 points Friday, gaining 1.9 percent to close at a record high of 45,631.74. The Nasdaq composite also posted a gain of 1.9 percent, while the S&P 500 index closed 1.5 percent higher.

Stocks rallied as Powell gave remarks from the Fed’s annual summit in Jackson Hole, Wyo., suggesting that the central bank would soon cut rates amid a slowdown in the job market.

“While the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers,” Powell said. “This unusual situation suggests that downside r

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