Home / Business and Economy / Wall Street Rebounds Strongly as Fed Policy Fuels Investor Optimism
Wall Street Rebounds Strongly as Fed Policy Fuels Investor Optimism
25 Aug
Summary
- Nasdaq jumps nearly 2%, S&P 500 rises 1.5% after Powell's remarks
- Experts divided on potential rate cuts, some see hikes instead
- Precious metals like gold and silver expected to surge on rate cut
In the week leading up to August 25th, 2025, Wall Street staged a remarkable comeback, leaving investors weighing the potential impact of Federal Reserve policy, inflation, and labor market indicators. The Nasdaq jumped nearly 2%, the S&P 500 rose 1.5%, and the Dow saw strong gains after remarks from Fed Chair Jerome Powell stirred hopes of potential rate cuts.
Market strategist Peter McGuire told ET Now that the Fed might not wait for perfect inflation numbers before slashing rates. He noted that the upcoming non-farm payroll report in early September will provide a clearer indication of what could happen at the Fed's meeting on September 16-17. While some are predicting a 25 or 50 basis point cut, McGuire cautioned that nothing is guaranteed yet, as Fed opinions remain divided, with some members even hinting at potential rate hikes.
Beyond equities, investors are also eyeing asset classes like gold and silver. McGuire explained that a rate cut would likely soften the US dollar and push precious metals toward record levels. Commodity markets are also in focus, with Chinese demand for industrial metals remaining strong and oil prices rising for the first time in three weeks amid ongoing uncertainty in Russia-Ukraine peace talks and global supply adjustments.
