(CNN) — Stocks surged Friday and the Dow closed at its first record high of the year after Federal Reserve Chair Jerome Powell signaled interest rate cuts could be on the way.

The Dow rose 846 points, or 1.89%, to close at an all-time high of 45,631.74. It’s the Dow’s first closing record high since December 4.

The broader S&P 500 gained 1.52% and the tech-heavy Nasdaq Composite gained 1.88%. The S&P posted its best day since May and snapped a five-day losing streak. The Dow also had its best day since May.

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.

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