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Dow Rallies on Fed Chair's Hints, Powered by Unlikely Stocks
24 Aug
Summary
- Dow Jones Industrial Average jumped 846 points on Friday
- Gains led by Goldman Sachs, Caterpillar, Home Depot, and American Express
- Nvidia's modest 1.7% gain added only 18.5 points to the index
On August 24, 2025, the Dow Jones Industrial Average experienced a significant rally, jumping 846 points. The gains were not led by the usual tech heavyweights like Nvidia, Microsoft, Apple, or Amazon, but rather by a surprising group of stocks.
The primary drivers of the Dow's surge were Goldman Sachs, Caterpillar, Home Depot, and American Express. These four companies alone accounted for 429 points, or more than half of the Dow's total gain. The index ended the day at a record close of 45,632.
Nvidia, a closely watched stock, saw a relatively modest 1.7% gain, adding only 18.5 points to the Dow's performance. This is due to the fact that the Dow is a price-weighted index, and Nvidia's share price is lower compared to the other stocks that had a larger impact.
The rally was sparked by comments from Federal Reserve Chairman Jerome Powell, who suggested that an interest rate cut might be coming in September. This news buoyed investor sentiment and drove the Dow to both a 52-week high and a record close.
Despite Nvidia's relatively small contribution to the Dow's gains, the company is still expected to report strong earnings results when it announces its fiscal second-quarter numbers on August 28. Analysts have raised their price targets on Nvidia, recognizing the company's continued growth and solid performance.
