How major US stock indexes fared Friday, 8/22/2025

Key Points

• Wall Street experienced a significant rally, with the Dow Jones Industrial Average soaring 846 points, marking a new record high.
• The S&P 500 and Nasdaq composite also saw notable gains, increasing 1.5% and 1.9%, respectively, with the S&P just shy of its previous all-time high.
• Treasury yields dropped after Federal Reserve Chair Jerome Powell suggested that interest rate cuts might be on the horizon, a move that generally encourages investment due to lower borrowing costs.
• For the year to date, the S&P 500 has risen by 10%, while the Dow and Nasdaq are up 7.3% and 11.3%, respectively, reflecting robust market performance overall.

Wall Street rallied after the head of the Federal Reserve hinted cuts to interest rates may be coming.

The Dow Jones Industrial Average soared 846 points Friday, reaching another record. The S&P 500 jumped 1.5%, landing just below the all-time high it set last week. The Nasdaq composite climbed 1.9%.

Treasury yields sank in the bond market after Jerome Powell indicated the next move for the Fed may be a cut. Wall Street loves lower rates because they can give a boost to the economy and to investment prices, even if they risk worsening inflation.

On Friday:

The S&P 500 rose 96.74 points, or 1.5%, to 6,466.91

The Dow Jones Industrial Average rose 846.24 points, or 1.9%, to 45,631.74.

The Nasdaq composite rose 396.22 points, or 1.9%, to 21,496.53.

The Russell 2000 index of smaller companies rose 87.85 points, or 3.9%, to 2,361.95.

For the week:

The S&P 500 is up 17.11 points, or 0.3%.

The Dow is up 685.62 points, or 1.5%.

The Nasdaq is down 126.44 points, or 0.6%.

The Russell 2000 is up 75.43 points, or 3.3%.

For the year:

The S&P 500 is up 585.28 points, or 10%.

The Dow is up 3,087.52 points, or 7.3%.

The Nasdaq is up 2,185.74 points, or 11.3%.

The Russell 2000 is up 131.79 points, or 5.9%.