Powell rescued markets from another tough sell-off on Tuesday, sparking a big turnaround as investors took his job market comment as a dovish signal.

Did Fed Chair Jerome Powell Drive a Dagger Through the Stock Market's Heart With These 6 Words? Historical Data Backs Up His Claim. The S&P 500 has recorded 32 new all-time highs this year, with the Dow Jones Industrial Average and Nasdaq Composite also powering to multiple record closes.

U.S. stocks continued to give back earlier losses in midday trading on Tuesday, with the Dow Jones Industrial Average hovering at a session high and the Nasdaq Composite was erasing most of its morning declines.

Within minutes, the words “highly valued” were pinging through the financial world. The words’ importance was a bit fuzzy. Maybe the Fed would somehow engineer the markets downward, or, with its vast data, it might foresee a market decline.

Small-cap stocks rallied as Federal Reserve Chair Jerome Powell made comments that buttressed expectations that more interest-rate cuts are coming. Speaking at a conference, [Powell suggested](

U.S. stocks respond to China trade tensions and the big banks get the third quarter earnings season into gear.

Investors have been clamoring for lower rates, but some commentators in the market think that a Fed cut won't boost stocks or the economy as expected.

Nvidia’s AI boost lifts Nasdaq and S&P500, while traders eye Fed minutes and government shutdown risks weighing on US stock market sentiment today.

In other words, home loans haven’t become significantly cheaper, despite the Fed’s rate-cutting cycle. This leaves some homeowners with a key decision: should they use extra cash to pay down their mortgage faster, or invest in the stock market instead?