In a significant turn of events, U.S. benchmark equity indexes experienced an increase during intraday trading following remarks from Federal Reserve Chair Jerome Powell indicating that the "time has come" for a shift in monetary policy towards easing measures. This comes after a prolonged period of tightening measures aimed at controlling inflation. As of midday Friday, the Nasdaq Composite saw an uptick of 1%, reaching 17,796.4.
Similarly, both the Dow Jones Industrial Average and the S&P 500 climbed by 0.7% each, standing at 41,008 and 5,611.2 respectively. The real estate and energy sectors emerged as the frontrunners in terms of gains, while the consumer staples sector was the only one to experience a decline. During his keynote address at the economic symposium sponsored by the Kansas City Fed in Jackson Hole, Wyoming, Powell emphasized that "the time has come for policy to adjust," highlighting a reduction in upside risks associated with inflation. Powell also conveyed that "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." This statement hints at a strategic pivot and suggests that future actions by the Fed will be data-driven and carefully considered. The Federal Open Market Committee of the central bank had previously executed a remarkable interest rate increase of 525 basis points from March 2022 through July 2023 to address inflationary pressures.
However, it has maintained a steady stance on monetary policy since then, with the latest pause in rate adjustments occurring late last month. Market analysts have noted that while Chair Powell did not provide explicit guidance on the anticipated pace of rate cuts, there was an implication that a significant 50-basis-point cut does not seem justifiable at this juncture, according to a report by TD shared with clients on Friday. In tandem with these developments, U.S.
treasury yields responded accordingly; the two-year yield experienced a decrease of 8.2 basis points, settling at 3.93% intraday, while the 10-year yield saw a drop of 4.2 basis points, landing at 3.82%. Turning our attention to company performance, shares of Workday ($WDAY), which specializes in cloud applications for finance and human resources, surged nearly 12%, making it the top gainer on the Nasdaq.
Their impressive fiscal second-quarter results, which exceeded market expectations, and an affirmed full-year subscription revenue forecast contributed to this upward trajectory. Meanwhile, Warner Bros. Discovery ($WBD) has embarked on an initiative to expand its original programming for TNT; however, reports suggest that this new content will not carry the high production costs of prior offerings, as detailed by The Wall Street Journal.
This announcement appears to have positively influenced their stock, which rose 6%, marking it as the second-best performer on the Nasdaq and a standout on the S&P 500. On a contrasting note, Intuit ($INTU) faced a challenging session on both the S&P 500 and Nasdaq, witnessing a decline of approximately 7.5%.
Their disappointing fiscal first-quarter outlook, which fell below Wall Street's expectations, was released late Thursday, triggering the drop in stock price. In commodity news, the West Texas Intermediate crude oil price witnessed a 2.7% rise, reaching $74.95 per barrel intraday. Additionally, economic data indicated a robust increase in new-home sales in the U.S.
during July, which rose by a double-digit percentage despite a continuous climb in median prices at the national level. Precious metals also reflected positive momentum, with gold appreciating by 1.2% to settle at $2,547.50 per troy ounce, while silver saw an even more impressive jump of 2.6%, reaching $29.81 per ounce..