Economy

Wall Street Review: Dow Hits Record, Small Caps Rally as Fed Paves Way for Rate Cuts

Analysts optimistic for a September rate cut.
Wall Street Review: Dow Hits Record, Small Caps Rally as Fed Paves Way for Rate Cuts
Stock market numbers are displayed on the floor of the New York Stock Exchange during afternoon trading on Aug. 1, 2025. Michael M. Santiago/Getty Images
Panos Mourdoukoutas
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The Dow Jones Industrial Average ended last week at a record for the year, and small caps rallied as Fed Chair Jerome Powell paved the way for interest rate cuts in his Jackson Hole speech on Friday.

Meanwhile, mixed corporate and economic headlines and valuation concerns throughout the week tamed the gains for the broader market. At the same time, tech shares failed to regain the ground they lost in the previous trading sessions.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”