Investors proceeded cautiously through the week’s opening days, but the tone shifted on Friday (August 23) afternoon in response to an optimistic announcement from US Federal Reserve Chair Jerome Powell
In a Jackson Hole speech, he signaled that the Fed is ready to begin cutting interest rates.
Crypto markets also saw a surge, breaking free from a weeks-long pricing gridlock. In company news, Waymo introduced a new version of its self-driving technology, marking another milestone in a series of wins in recent months.
Stay informed on the latest developments in the tech world with the Investing News Network’s round-up.
Meanwhile, the Fed meeting minutes revealed that policymakers considered a quarter percentage point rate cut in July due to reduced inflation and increased unemployment, increasing confidence in a rate cut in September. The news sent indexes higher, with the Russell 2000 taking the lead, gaining over 1 percentage point to close at 2,170.32.
During the highly anticipated speech, Powell endorsed an imminent rate cut, but refrained from specifying the exact number of basis points by which the rates might be reduced.
“The time has come for policy to adjust. 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,” he said.
The news ignited a surge in all three major stock indexes as investors reacted positively. The Russell 2000 outperformed by far, climbing more than 3 percent midday. This continued a recent trend of increased investor interest in mid-cap stocks, which has been observed in response to optimistic Fed data over the past couple of months.
The week ended strong with all four major indexes up more than 1 percent on the week, including the Russell 2000, which was up by over 3 percent.
Bitcoin experienced a dip below US$58,000 in pre-market trading on Monday morning, spending most of the trading day at that level before recovering to move above US$61,000 in the hours between Monday and Tuesday.
However, the crypto market surged in response to positive economic developments on Friday. The likelihood of an impending September rate cut being further solidified following Powell’s address in Jackson Hole Wyoming on Friday morning sent the price of Bitcoin above US$64,000 by 5:20 p.m. EDT on Friday.
Ether, which had a volatile week, also saw a significant boost, trading above US$2,770 as of that time.
Crypto media outlet Decrypt has suggested that the lack of a clear stance on cryptocurrency and Bitcoin in the Democratic Party’s platform may have contributed to Trump overtaking Harris.
The Waymo Driver will be able to see further, up to 500 meters away, and can better withstand harsh weather conditions. The new hardware also consists of an enhanced camera-radar surround view and advanced sensor technology that will reportedly improve its navigation capabilities.
The new systems are currently still in testing with updates expected to be provided as development progresses.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” AMD Chair and CEO Dr. Lisa Su said in a press release. The deal is valued at US$4.9 billion, and consists of a blend of cash and stock, including up to US$400 million based on post-closing milestones.
AMD shares were up 4.66 percent on Monday, and reached US$161.57 during trading on Tuesday, the company’s highest valuation this week. AMD’s share price was sitting US$154.97 on Friday afternoon, up 4.46 percent for the week.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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