New York City, NY – The stock market showed signs of recovery on Friday after Federal Reserve Chair Jerome Powell expressed confidence in the U.S. economy during the 2025 U.S. Monetary Policy Forum in New York City. The Dow Jones Industrial Average surged by 280 points, representing a 0.7% increase, while the S&P 500 and the Nasdaq Composite also experienced gains of 0.7% and 0.8%, respectively.
Despite a positive outlook from Powell, investors on Wall Street remained cautious throughout the trading session, selling off shares whenever the major indexes showed strength. In his remarks, Powell emphasized the resilience of the U.S. economy, noting a strong labor market and inflation moving closer to the Fed’s target of 2%.
Powell pointed out that the Federal Reserve is closely monitoring the impacts of various White House policies, such as trade deals, immigration laws, fiscal measures, and regulatory changes. He highlighted the importance of assessing the overall effect of these policies on the economy and monetary policy decisions.
“As we navigate through the uncertainties, we remain vigilant in distinguishing between significant developments and mere noise in the economic landscape,” Powell stated. “We are in no rush to make decisions and are prepared to wait for a clearer understanding of the situation.”
Throughout Powell’s address, the three major indexes continued to gain momentum, reflecting a degree of optimism among investors regarding the current state of the U.S. economy. While uncertainties persist, Powell’s reassurance seemed to provide a sense of stability in the market.
As the trading day progressed, market participants closely monitored any fluctuations in response to Powell’s statements, analyzing the implications for future monetary policy decisions. The overall sentiment on Wall Street appeared cautiously optimistic, with investors eagerly awaiting further clarity on the economic outlook.