Global markets gained fresh momentum on August 22, 2025, as Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium hinted at a possible interest rate cut in September—lifting hopes and risk appetites worldwide.
In the U.S., markets responded enthusiastically. The Dow Jones Industrial Average soared about 700 points (+1.6 %), with the S&P 500 up 1.4 % and the Nasdaq climbing 1.6 %, as investors seized on signs of dovish monetary policy amid cooling labor markets and ongoing inflation-watch pressures procapitas.com+10AP News+10Reuters+10.
In pre-market activity, equities futures were broadly higher: Dow futures gained 0.29 %, S&P 500 futures rose 0.20 %, and Nasdaq futures also ticked up. Tech-related movers included strong pre-market gains for Bio‑Rad Laboratories Cl B (+17.4 %) and Ubiquiti (+6.3 %), while Intuit and Workday posted declines barrons.com.
Across the Atlantic, cautious optimism prevailed. European indices edged higher—Germany’s DAX and France’s CAC rose modestly, while the UK market showed mixed signs. Consumer confidence in the UK climbed to a 12‑month high, aided by recent Bank of England cuts theguardian.com.
By contrast, India’s markets slipped sharply—Sensex plunged around 690 points, and the Nifty slid below 24,900—as investors pulled back ahead of Powell’s speech, fretted over potential new U.S. tariffs, and exited positions after a recent rally. Foreign institutional selling and technical weakness added to the downtrend The Economic Times.
Fund flows reflected prevailing caution: global equity fund inflows tumbled to approximately $2.27 billion, down sharply from a robust $19.29 billion the week prior—underscoring investor wariness in tech-heavy segments ahead of policy clarity