Powell Speech Lifts US Stocks; UBS Raises S&P 500 Target
U.S. stocks rose modestly as investors awaited Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. The Dow Jones Industrial Average gained 275 points (0.28%), while the S&P 500 and Nasdaq Composite increased by 0.2% and 0.15%, respectively. Market volatility this week stemmed from corporate earnings reports, weak labor data and geopolitical concerns. Pressure from President Trump to cut interest rates has put the Powell speech into sharp focus following two dissenting Fed governors at the last meeting. UBS raised its 2025 year-end S&P 500 forecast from 6,200 to 6,600 and set a mid-2026 target of 6,800, citing expectations for easing rates, stronger corporate earnings and new trade deals. The crypto market is also on edge: Bitcoin (BTC) is expected to mirror risk assets and analysts predict it could reach $150,000 in 2025 and as high as $1 million by 2030. Traders will closely monitor Powell’s speech for signals on monetary policy, anticipating that any hint of rate cuts could fuel further gains in equities and digital assets.
Bullish
Investors are positioning ahead of Chair Powell’s speech, anticipating dovish signals on interest rates that would boost risk assets. UBS’s upward revision of the S&P 500 target underscores growing optimism about corporate earnings and policy easing. Historically, similar Fed remarks at Jackson Hole have driven equity rallies and lifted Bitcoin prices as traders seek yield. If Powell signals a shift toward rate cuts, we can expect a short-term spike in stock and crypto markets followed by sustained bullish momentum as lower borrowing costs support growth. This convergence of equity and digital asset optimism points to a bullish outlook.