Stocks Soar, Novo Nordisk Cuts Bonuses, Waymo Tests in NYC

Stocks surge after Fed Chair Jerome Powell's speech, leaving the door open for a rate cut in September. Cryptocurrencies also see gains, with Bitcoin up 3% and Ethereum surging 9%. Novo Nordisk cuts bonuses for employees in Denmark due to lower sales forecast and competitor Eli Lilly. Google's Waymo to test robo taxis in NYC, with up to 8 autonomous vehicles in Manhattan and Brooklyn until late September.

Stocks surged and cryptocurrencies saw significant gains following Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium. Powell's remarks hinted at potential interest rate cuts in September, sending Wall Street into a rally and cryptocurrencies like Bitcoin and Ethereum soaring.

Powell's speech, delivered on Friday, indicated that the Fed may adjust its policy stance due to the shifting balance of risks. He noted that while the labor market remains strong, downside risks are rising, and tariffs pose inflation risks. The Fed's benchmark interest rate is currently within a range of 4.25%-4.5%, and Powell emphasized the importance of Fed independence in making policy decisions based solely on economic data [1].

The speech sparked immediate market reactions. The Dow Jones Industrial Average gained over 600 points, and the 2-year Treasury note saw a 0.08 percentage point fall to around 3.71%. Cryptocurrencies also experienced a significant boost, with Bitcoin up 3% to $114,200, Ethereum surging 9%, and Litecoin and other major coins rallying sharply [3].

Meanwhile, Novo Nordisk announced it would cut employee bonuses in Denmark due to a lower sales forecast and increased competition from Eli Lilly. Additionally, Google's Waymo will test robo-taxis in New York City, with up to eight autonomous vehicles operating in Manhattan and Brooklyn until late September [2].

Powell's speech highlighted the Fed's ongoing review of its policy framework, which includes a commitment to a 2% inflation target. The review, which occurs every five years, aims to address the lessons learned from the past five years of high inflation [1].

References:
[1] https://www.cnbc.com/2025/08/22/powell-indicates-conditions-may-warrant-interest-rate-cuts-as-fed-proceeds-carefully.html
[2] https://finance.yahoo.com/news/fed-chair-powell-opens-door-to-september-rate-cut-in-jackson-hole-speech-says-economic-outlook-may-warrant-change-in-stance-140020886.html
[3] https://m.economictimes.com/news/international/us/cryptocurrency-spikes-after-after-powell-hints-at-rate-cut-bitcoin-ethereum-litecoin-surge-is-momentum-finally-here/articleshow/123457352.cms