Bitcoin, Dow, S&P 500 Surge As Fed Chair Jerome Powell Suggests Rate Cuts Incoming

Bitcoin, the Dow Jones and the S&P 500 are surging as Federal Reserve Chair Jerome Powell suggests rate cuts are likely.

In his highly anticipated yearly speech at Jackson Hole, Wyoming, Powell said “the balance of risks appear to be shifting” between the central bank’s attempts to manage inflation while keeping the jobs market steady.

According to Powell, the “baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”

The suggestion that rate cuts are coming triggered an immediate burst in the price of BTC, which soared from a 24-hour low of $111,688 to $116,904 at time of publishing.

Meanwhile, the Dow Jones has surged by more than 800 points to 45,632, and the S&P 500 has jumped 103 points to 6,473.

For months, Powell has pointed to strong numbers in the jobs market and President Trump’s tariffs as a combination that warrants a cautious approach to monetary policy and a need to keep rates higher for longer.

But recent employment data has shown a significant slowdown, with July 2025 adding only 73,000 jobs, well below expectations, and downward revisions of 258,000 jobs for May and June.