Key Takeaways
- U.S. stock markets surged Friday, with the Dow Jones Industrial Average (DJI) closing up 1.82% at 45,601.21, as Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts.
- The U.S. government has acquired a 10% non-voting equity stake in Intel (INTC), confirmed by Commerce Secretary Howard Lutnick, converting CHIPS Act grants into taxpayer equity.
- Foot Locker (FL) shareholders overwhelmingly approved its $2.4 billion acquisition by DICK'S Sporting Goods (DKS), with the deal expected to finalize in the second half of 2025.
- U.S. bank deposits saw a modest weekly increase, rising to $18.368 trillion from $18.328 trillion.
U.S. equity markets closed significantly higher on Friday, driven by optimism following Federal Reserve Chair Jerome Powell's remarks at the annual Jackson Hole Economic Policy Symposium. The Dow Jones Industrial Average (DJI) climbed 815.71 points (1.82%) to reach 45,601.21, while the S&P 500 (SPX) gained 95.20 points (1.49%) to 6,465.37. The Nasdaq Composite (IXIC) also saw a strong close, rising 385.56 points (1.83%) to 21,485.87.
Powell's speech indicated a cautious pivot in monetary policy, suggesting that the "shifting balance of risks" to employment and inflation "may warrant adjusting our policy stance." This statement fueled investor hopes for potential interest rate cuts, leading to a broad market rally and helping major indices recover from earlier weekly losses. The Wall Street Journal's Nick Timiraos had earlier reported that Powell might signal a reversal of key 2020-era policies, including flexible inflation targeting.
In significant corporate news, the U.S. government has officially acquired a 10% ownership stake in semiconductor giant Intel (INTC). U.S. Commerce Secretary Howard Lutnick confirmed the "historic agreement," stating that the move converts previous grants under the CHIPS Act into non-voting equity for American taxpayers. This initiative, championed by the Trump administration, aims to ensure the U.S. receives a return on its investment in domestic chip manufacturing.
Separately, Foot Locker (FL) shareholders have given their overwhelming approval for the company's acquisition by DICK'S Sporting Goods (DKS). Approximately 99% of votes cast were in favor of the merger agreement at a special meeting held today. The deal, valued at approximately $2.4 billion, is anticipated to be completed in the second half of 2025, subject to customary closing conditions and regulatory approvals. Shareholders will have the option to receive either $24.00 in cash or 0.1168 shares of DICK'S common stock for each Foot Locker share.
Meanwhile, U.S. bank deposits showed a slight increase, rising to $18.368 trillion from $18.328 trillion in the prior week. This modest growth reflects ongoing stability within the banking sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.