Stocks made gains early in the morning on Friday as Federal Reserve Chairman Jerome Powell indicated that interest rate cuts are likely on the horizon. Cava Group (CAVA) and Ross Stores (ROST) saw an increase in their stock prices following their earnings reports, while Nvidia (NVDA) also saw some positive movement.
In his speech, Powell mentioned that it was time for policy adjustments with regards to interest rates. He highlighted the significant decline in inflation, the stabilization of the labor market, and the normalization of supply constraints. Additionally, Powell expressed confidence that inflation is moving towards the Fed’s 2% target.
Investors have been anticipating the Fed’s first rate cut, with expectations of multiple reductions in the coming months. The bond market also reacted to Powell’s comments, with the 10-year Treasury yield falling to 3.81% on Friday morning.
The Nasdaq composite, S&P 500, and Dow Jones Industrial Average all experienced gains, with the Russell 2000 also surging. U.S. crude oil prices rose to $74.28 a barrel.
Cava Group (CAVA) saw a significant increase in stock price following a positive second-quarter earnings report and increased sales guidance. Ross Stores (ROST) also experienced growth after surpassing second-quarter profit and sales forecasts. Workday (WDAY) and Nvidia (NVDA) also saw gains after beating earnings expectations.
While some stocks saw positive movement, Peloton Interactive (PTON) struggled after a downgrade from JPMorgan. Chewy (CHWY) received an upgrade from Piper Sandler, leading to a slight increase in stock price.
Overall, stock market activity on Friday was influenced by Powell’s speech and positive earnings reports from various companies.
