Dow Jones Industrial Average notches record high close

Dow Jones Industrial Average notches record high close

The Dow Jones Industrial Average (DJIA) closed at a record high of 45,680 on Friday, July 2, 2025, following Federal Reserve Chair Jerome Powell's notably dovish speech at Jackson Hole. Powell indicated that the Fed is prepared to adjust its policy stance, potentially leading to interest rate cuts, in response to the cooling labor market and a more tolerant stance on inflation risks stemming from trade tariffs [1].

The DJIA surged 2% after Powell's remarks, breaking through its previous record high. The S&P 500 gained 1.4%, closing at 6,460, while the Nasdaq Composite rose 1.4% to snap a three-day losing streak. The Russell 2000 Index, which tracks small-cap stocks, soared nearly 4%, logging its best session since April 9 and climbing back to levels last seen in December 2024 [1].

Regional banks, tracked by the SPDR S&P Regional Banking ETF (NYSE:KRE), jumped nearly 5%, contributing to the strong performance of the small-cap sector. The Materials Select Sector SPDR Fund (NYSE:XLB) outperformed, rising 0.3%, while the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) lagged, up 0.1% [1].

Commodities also saw gains, with gold climbing 1% and silver surging 2.2%. Crypto markets experienced explosive growth, with Bitcoin (CRYPTO: BTC) soaring 3.5% to $116,000, and Ethereum (CRYPTO: ETH) rallying 12% [1].

Key performers on Friday included Enphase Energy Inc. (NASDAQ:ENPH), Builders FirstSource Inc. (NYSE:BLDR), and Coinbase Global Inc. (NASDAQ:COIN), which saw significant gains of 9.18%, 7.97%, and 6.52%, respectively [1].

The U.S. dollar fell 0.9%, and short-dated Treasury yields collapsed, with the 2-year note dropping 10 basis points to 3.70%. These market movements reflect investors' optimism about the potential for easier monetary policy and the Fed's more accommodating stance on inflation risks [1].

References:
[1] https://finance.yahoo.com/news/dow-hits-record-highs-small-171542921.html