Investing.com-- U.S. stocks rallied Friday, as Treasury yields swung lower after Federal Reserve Chair Jerome Powell signaled rate cuts were on the way.
At 16:00 p.m. EDT (2000 GMT), the S&P 500 climbed 1.1%, notching a 1.5% gain for the week, Dow Jones Industrial Average rose 462 points, or 1.1%, while NASDAQ Composite gained 1.5%.
Powell says "time has come to adjust policy"
Fed Chair Powell said on Friday that the "time has come" for policy to be adjusted Jackson Hole Symposium amid cooling inflation and a softer labor market. The Fed chief also appeared to keep the door open to a bigger rate cut, saying the size of rate cuts as well as the frequency would depend on incoming data.
“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Powell said on Friday during the Kansas City Fed’s annual conference at Jackson Hole, Wyo.
The odds of a larger 50 basis cut at the September rose to 36% from 28% the previous day, according to Investing.com's Fed Rate Monitor Tool.
Treasury yields fell sharply, with the yield on the 2-Year which is sensitive to fed policy, falling 8 basis points to 3.93%.
Uber announces partnership with Cruise; Ross Stores, Workday jump on guidance
Uber Technologies (NYSE:UBER) has announced a multiyear partnership with Cruise, a subsidiary of General Motors (NYSE:GM), allowing the latter's self-driving vehicles to be launched on Uber's ride-hailing platform. Uber was up 1%, while General Motors rose more than 4%.
"We are encouraged that Uber is partnering with yet another AV player in Cruise and believe it reinforces the notion that AVs are unlikely to result in a 'winner-take-all' market, rather they are more likely to be commoditized," Deutsche Bank (ETR:DBKGn) said in a note on Friday.
Ross Stores (NASDAQ:ROST) stock gained nearly 2% after the retailer raised its fiscal 2024 profit forecast and posted second-quarter results above expectations late Thursday, benefiting from demand for its discounted apparel and easing freight costs.
Workday (NASDAQ:WDAY) shares jumped 12% after the human resource software provider pivoted to a more balanced view on growth versus margins following better-than-expected Q2 revenue. The company also announced a $1 billion stock buyback plan.
"Workday surprised most investors (and us) by making a pronounced and very welcome pivot on the growth-margin trade-off, backing off the previous FY27/3-year CAGR of 17-19% and setting it at 15%," UBS said in a Friday note. The company also raised the fiscal 2027 non-GAAP operating margin target to 30% from 25% and announced a $1B stock buyback plan.
RFK Jr. suspends presidential campaign, endorses Trump
Robert F. Kennedy Jr. suspending his U.S. presidential campaign on Friday and endorsed Republican presidential candidate Donald Trump.
Kennedy said his name would remain on the ballot in most states, stressing that he was merely suspending not terminating his campaign.
“I am not terminating my campaign I am simply suspending it and not ending it. My name will remain on the ballot in most states,” he said at an event on Friday in Arizona.
(Peter Nurse, Ambar Warrick contributed to this article.)