Dow Jones hits record high, rises 846 points

US stocks closed higher on Friday, as expectations grew for a Federal Reserve interest rate cut in September, after Chairman Jerome Powell opened the door to a potential resumption of monetary easing in the future.

The Dow Jones Industrial Average jumped 1.89%, or 846 points, to 45,631, setting a new record closing high and posting weekly gains of 1.53%.

The broader S&P 500 index gained 1.52%, or 96 points, to 6,466, turning positive for the week with a 0.27% advance.

The Nasdaq Composite climbed 1.88%, or 396 points, to 21,496, though it ended the week down 0.58%.

In Europe, the Stoxx Europe 600 rose 0.40% to 561, recording weekly gains of 1.45%. Germany’s DAX added 0.30% to 24,363 points, France’s CAC 40 increased 0.40% to 7,969, while London’s FTSE 100 edged up 0.15% to 9,321.

In Japan, the Nikkei 225 closed flat at 42,633 points, while the broader Topix index advanced 0.60% to 3,100. Both indices, however, logged weekly losses of 1.7% and 0.2%, respectively.

In oil markets, Brent crude futures for October delivery edged up 0.10%, or 6 cents, to $67.73 a barrel, finishing the week with gains of 2.85%.

US WTI crude futures for October delivery rose 0.22%, or 14 cents, to $63.66 a barrel, boosting weekly gains to 2.71%.

Gold futures for December delivery increased 1.10%, or $36.90, to settle at $3,418.50 per ounce, achieving a weekly gain of 1%.

Federal Reserve Chairman Jerome Powell delivered a speech at the Jackson Hole symposium, in which he said current conditions may warrant future interest rate cuts. However, he cautioned that rising uncertainty is making the task of monetary policymakers more difficult.