📈 Markets Moon on Powell’s Dovish Pivot 📉

[ed]

Dow closed at a new all-time high: 45,631.74 (+846 pts / +1.89%)

S&P 500 +1.52% → best day since May.

Nasdaq +1.88% → snapped 5-day losing streak.

Why? Fed Chair Jerome Powell @ Jackson Hole hinted at rate cuts coming.

Key quotes:

“Downside risks to employment are rising.”

“The baseline outlook and shifting risks may warrant adjusting our stance.”

Translation: September rate cut is back on the table. ️

Market Takeaways

Fed’s been on pause since Dec, but Powell’s tone was more dovish than expected.

Lower rates = cheaper borrowing + more liquidity = risk assets pump.

Bonds yield less → equities + crypto look more attractive.

Traders betting on easing cycle resuming → year-end rally in play.

Investor Sentiment

José Torres (Interactive Brokers): “Lighter rates are widening the path for a broader rally.”

Krishna Guha (Evercore): Powell’s tone = dovish surprise.

David Laut (Abound Financial): “Bullish trend should continue short term.”

Bottom Line: Powell just gave Wall Street (and crypto by extension) the green light for a risk-on rally.
Stocks at ATHs → liquidity tides rising → altseason narrative stronger than ever.

[jacson4]

Powell’s Jackson Hole speech really flipped the switch for markets. The fact that the Dow is printing fresh ATHs while the Nasdaq snaps its losing streak shows how fast sentiment can turn when the Fed signals easing. Lower rates don’t just fuel equities — they push money into crypto, commodities, and risk assets across the board. What we’re seeing is the early stage of a liquidity wave, and historically those waves don’t just stop at stocks. If Powell follows through in September, this could be the spark that sets up both a Q4 equities rally and a serious altseason in crypto.

[Nahid10]

No doubt Powell’s dovish tone gave Wall Street the green light, but it’s worth watching how this narrative plays out beyond the first pump. Yes, cheaper credit and lower bond yields = bullish tailwinds for stocks and crypto. But inflation is still sticky at 2.7%, and the Fed can only cut so far without risking credibility. For traders, the message is clear: momentum is back, liquidity is back, but so is volatility. Ride the trend, but don’t forget — Powell’s words move markets fast, and the same voice that pumped risk assets today could spook them tomorrow.