Stock Market Bounces Back from Early Lows, Nasdaq Composite Down 0.1%

The stock market has recovered from its opening lows, with the Nasdaq Composite down 0.1% and the Dow down just 67 points, or 0.1%. This marks the second day in a row the market has rebounded. Breadth is improving as stocks show signs of stabilization.

The U.S. stock market rebounded on Friday, with the Nasdaq Composite down 0.1% and the Dow Jones Industrial Average (^DJI) down just 67 points, or 0.1%. This marks the second consecutive day of market recovery, indicating improved breadth and signs of stabilization [1].

Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday opened the door to a potential September rate cut, sparking a surge in stock prices. The Dow Jones Industrial Average (^DJI) rose 800 points or 1.9% to close at a new record, while the S&P 500 (^GSPC) moved up about 1.5%, and the tech-heavy Nasdaq Composite (^IXIC) climbed 1.9% [1].

Powell's remarks indicated that the Fed's baseline outlook and the shifting balance of risks may warrant adjusting their policy stance, fueling bets on a September rate cut. Traders priced in about 91.5% odds of a September cut compared to 70% earlier in the morning and 85% a week ago [1]. The 10-year (^TNX) and 30-year (^TYX) Treasury yields fell after Powell's remarks, reflecting the market's expectations of an easing monetary policy [1].

The speech also spurred gains in cryptocurrencies, with Bitcoin (BTC-USD) and Ethereum (ETH-USD) leading the charge. Additionally, shares of tech giants like Nvidia, Meta Platforms, Alphabet, and Amazon climbed on Powell's comments [3].

On the earnings front, Zoom (ZM) stock popped after reporting an AI boost, while Ross Stores (ROST) jumped as shoppers sought discounts amid tariffs. Intel (INTC) shares also gained after the government will take a 10% stake in the ailing chip giant, calling it a "great deal" [1].

Meanwhile, President Trump continued to push the Fed to lower rates, opening a new front in his public pressure campaign by calling for the resignation of Fed governor Lisa Cook for alleged mortgage fraud [2]. However, legally, presidents cannot easily dismiss Fed governors.

The stock market's rebound came on the heels of a downbeat week for markets, as tech stocks took a hit amid AI trade doubts. The latest rally helped investors claw back most of the losses from earlier in the week, with the 30-stock Dow advancing 1.5%, the S&P 500 gaining 0.3%, and the Nasdaq slipping 0.6% for the week [3].

References:

[1] https://finance.yahoo.com/news/live/stock-market-today-dow-jumps-800-points-to-record-sp-500-nasdaq-soar-as-powells-jackson-hole-finale-fuels-bets-on-september-rate-cut-200110990.html
[2] https://www.tradingview.com/news/DJN_DN20250820007552:0-dow-jones-top-markets-headlines-at-1-pm-et-trump-considers-firing-fed-official-after-accusation-of-mortgage-fraud-nasdaq/
[3] https://www.cnbc.com/2025/08/21/stock-market-today-live-updates.html