The Dow Jones Industrial Average surged roughly 800 points to a fresh record high on Friday after Federal Reserve Chair Jerome Powell signaled the Fed may cut interest rates as soon as September, igniting a broad risk-on rally across equities. Powell said the “baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” highlighting rising downside risks to employment and opening the door to policy easing if labor market weakness persists. Risk appetite broadened beyond megacap tech, with small caps and cyclical groups participating as the dollar softened on the prospect of lower U.S. rates. Investors will now focus on incoming labor and inflation data to validate the Fed’s evolving stance and calibrate expectations for the pace of easing into year-end. With Powell keeping optionality while acknowledging softness in the jobs backdrop, markets appear positioned for continued volatility as each data print refines the odds of a September cut and the path thereafter.