The Dow Jones Industrial Average ( ) added over 460 points, or 1.1%, in Friday's session, nearing its all-time high. Meanwhile, the S&P 500 ( ) and Nasdaq Composite ( ) rose by 1.
15% and 1.47%, respectively, following commentary from Federal Reserve Chair Jerome Powell in earlier Friday morning. Yahoo Finance Reporter joins Market Domination Overtime to break down the biggest market movements in the August 23 trading session.
In addition to the broad market gains, Blikre also notes the momentum behind rising gold prices ( ) in its latest rally, the Fed's signaling about interest rate cuts to come in September, and downward trends in the volatility index ( ). Watch Federal Reserve Chair For more expert insight and the latest market action, click to watch this full episode of Market Domination Overtime. Video Transcript Stocks closing higher today.
The dow up near a record high after fed. Chair Powell signaling rate cuts are likely in September with more on the market takeaways. Let's get to Yahoo Finance is Jared.
We take it away, Jared. Thank you, Paul Pivots. I think that speaks a lot and let's just get into some of the price action surrounding it.
A lot of different markets participating. This is my leaders index. We'll get to sectors in a second.
But first look taking the top spot. Remember way back when, when Bitcoin used to be heavily heavily levered towards the fed, maybe it is. Again, we got solar energy, regional banks, unprofitable tech, home builders, ipos small oil Korean stocks and that's just the top row right there.
And when we take a look at what's happened this week over all the five days, most of those names are pretty consistent. We're seeing a lot of small cap names and also interest rate sensitive sectors like home builders over the last five days. That's number one.
Then regional banks number three there and just taking a look at the sector action supports what I'm saying. Real estate, very interest rate sensitive sector that is in the number one spot ties in with home builders, consumer discretionary, people buying things that they want, don't necessarily need materials, industrials, health care staples. So you got an interesting mix of cyclicals and values there.
V because that's, that's something that we've been discussing. Uh just, just the volatility and what Wall Street can expect moving forward. Ellie, I think this speaks to it all Vick sick.
All right, we had a rally going on in the vics and it is back down. So, uh for everybody out there when it spikes up the vics, that is a negative sign for risk markets usually and when it's coming down, that's what you want to see. Now, here's what the vics did today.
Let me put a line chart in there and you can see by the way the Vicks opens about European time 2 a.m. You can see we got a spike up here, but if we chart the price action for the entire week, here's that trend.
I was talking about, what is that Tuesday through Thursday? And now it is to the downside. Now, a lot of people are going to remember that big spike. We had a couple of weeks ago.
That is big and that is important. Now, what usually happens with the J the vics? Let me put a five year chart. We get a big spike and then we get some spikes after time and they tend to get lower and lower.
So, um, just kind of thinking about where we are with this latest cycle, you might expect to see another one here, maybe another one here. It's all about the timing. Right.
And fortunately we have a seasonal map for the Vick. Um, I've been rolling this out at various times of the year. Um, and that is not it right there.
Let's see if I can find. Well, unfortunately, we don't have my vix map. It was very beautiful, but I, I do guarantee you that it was showing that we, it perfectly captured that up spike on August the fifth.
And um what more can I say? We'll show it again. I'm sure we'll have another opportunity, Jerry. And it's interesting that you talk about the vics.
Um because when we talked to Rick Reeder of Blackrock on the opening big podcast this week, he talked about going along some volatility strategies right now. So that's in keeping with what you're talking about. But let's get to your last point here.
You and I have been talking about gold all week long. Yes, we have gold has been hitting record highs, not big, record highs, not huge movements and to be fair, it did not hit a record high today, but it did advance about 2%. Let me just get to the charts and show you what I am looking at right here.
Here is gold futures. This is a nine month. Look here, if I put a five year chart, you're going to see how long and maybe let's put a 10, I can show you how long it was just camping out in this big long trade range waiting to break out of the 2000 level finally did.
And now it's up to 2547. Most of the movement was made earlier in the year in this big stretch from what is that? Mid February to about mid April right there. Lately, central banks have been buying gold en masse, they have been accounting at least according to some of the analysts, I follow for most of the price action, we're not seeing retail really participate.
But if retail did that would just a larger marginal force that would speak to gold's potential. Now, gold is known as an inflation hedge, but it needs to be an inflation hedge within a certain context of the business cycle and it so happens that if the fed is about to cut rates as we believe they are as the fed is telegraphing, this is a good time to buy gold. So just kind of outline all those reasons right there, underlying all those reasons.
Gold is a good thing to have in your portfolio if you already own it right now..
