Friday Afternoon Coffee - Markets Update - 22 Aug 2025 - Stocks Rally as Powell Hints at September Rate Cut; Yields Slide, Gold Gains

The Trade Academy Team
Aug 22, 2025
2 min read

Markets Update: U.S. stocks surged Friday while Treasury yields and the dollar retreated after Federal Reserve Chair Jerome Powell signaled the possibility of a September rate cut, though he stopped short of making any firm commitment.

Global Markets Roundup: 22 August 2025

Speaking at the annual Jackson Hole symposium in what marks his final address as Fed chair, Powell acknowledged rising risks to the labor market even as he warned that inflation pressures remain. His comments boosted investor hopes for policy easing next month.

Equities Jump to Fresh Highs

Wall Street rallied across the board, with the S&P 500 climbing 1.5% and the Nasdaq Composite up 1.7%. The Dow Jones Industrial Average leapt 2.2% to a record intraday peak.

Treasury Yields Drop Sharply

The bond market cheered Powell’s remarks, with the policy-sensitive two-year Treasury yield tumbling nearly 10 basis points to 3.69%. Benchmark 10-year yields slid 6 bps to 4.27%.

Analysts noted that Powell placed greater emphasis on employment data ahead of the Fed’s September 16–17 meeting, a stance that could intensify political pressure. President Donald Trump has repeatedly criticized the Fed chair, urging immediate and aggressive rate cuts.

Dollar Weakens, Euro Gains

Currency markets mirrored the dovish tone. The dollar index DXY dropped 0.89% to 97.73, down from 98.7 before Powell’s speech. The euro advanced 0.97% to $1.1717, while the yen strengthened as the dollar fell 1.1% to 146.74.

European markets saw smaller moves, with the STOXX 600 up 0.4% and Germany’s 10-year Bund yield slipping 3 bps to 2.72%.

China Tech Rally Lifts Asia

Earlier in the session, Chinese equities gained after DeepSeek unveiled an upgrade to its V3 AI model and Reuters reported Nvidia asked Foxconn to halt work on its H20 chip, boosting domestic rivals. The CSI 300 Index climbed 2.1%, while Hong Kong-listed tech shares advanced 2.7%.

Japanese data showed core consumer prices slowed for a second straight month in July but remained above the Bank of Japan’s 2% target, keeping alive expectations of further tightening.

Commodities Mixed

Oil prices edged higher, with Brent crude rising 18 cents to $67.85 a barrel and U.S. crude up to $63.78. The gains followed Thursday’s rally as Russia and Ukraine traded blame over stalled peace negotiations.

Gold extended its safe-haven appeal, with spot prices climbing 1% to $3,370 per ounce.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team