US stocks soared after Jerome Powell’s speech. Silver is close to a 14-year high

On Friday, the Dow Jones (US30) surged by 1.89% (+1.49% for the week). The S&P 500 (US500) gained 1.52% (+0.34% for the week), and the tech-heavy Nasdaq (US100) closed 1.54% higher (down -0.56% for the week). The US stocks skyrocketed on Friday after Fed Chair Jerome Powell’s speech at Jackson Hole signaled a potential September rate cut, triggering the strongest cross-asset rally since April. Speaking at the annual Fed symposium, Powell noted that a shift in the balance of risks to the economy “could call for an adjustment to our policy,” while also warning that inflationary pressures persist. Traders quickly raised the odds of a 25 bps rate cut in September to around 91%. Tech stocks performed particularly well, with Tesla jumping 6.2%, Meta, Alphabet, and Amazon all gaining more than 2%, and Nvidia up 1.7%. Intel shares soared 5.5% on reports that the Trump administration plans to acquire a 10% stake in the chipmaker.

The Canadian dollar strengthened to 1.39 per US dollar as weakness in the greenback outweighed poor domestic data. In Canada, the mood also turned more dovish for the Bank of Canada, as July retail sales were projected to have fallen 0.8%, the second-steepest decline in a year, highlighting the volatility in retail sales amid trade uncertainty with the US. Core average inflation held steady at 3.0% against expectations of 3.1%, and employment data showed an unexpected loss of 41,000 jobs in July versus expectations for a gain of 13,500. This kept the unemployment rate at 6.9%, reinforcing the case for a looser policy.

The Mexican peso strengthened to approximately 18.6 per US dollar, nearing its yearly high, driven by the weaker US dollar. Jerome Powell’s Jackson Hole speech increased the likelihood of a September Fed rate cut, which pushed the US dollar lower. This eased pressure on the dollar as a whole and supported emerging market currencies. At the same time, Banxico’s quarter-point rate cut to 7.75% on August 15 was a split decision, and the minutes omitted previous language promising further easing. This signals a gradual approach to easing rather than an aggressive pivot, maintaining a positive real yield.

European stock markets traded without a clear direction on Friday. The German DAX (DE40) rose by 0.29% (+0.20% for the week), the French CAC 40 (FR40) closed positive 0.40% (+0.51% for the week), the Spanish IBEX 35 (ES35) gained 0.61% (+0.81% for the week), and the British FTSE 100 (UK100) closed 0.13% higher (+2.00% for the week). Germany’s economy shrank by 0.3% quarter-on-quarter from April to June, a steeper contraction than the previous estimate of 0.1% and following a 0.3% growth in the first quarter.

WTI crude oil prices hit $63 a barrel on Friday, marking their first weekly gain in three weeks as geopolitical tensions and supply dynamics kept markets volatile. Uncertainty increased after Russia launched new airstrikes on Ukraine and Ukraine struck a refinery and a key oil pumping station, disrupting supplies on the “Druzhba” pipeline. Meanwhile, US crude oil stockpiles shrank by 6 million barrels last week, significantly more than expected, suggesting high demand and providing support for prices.

Silver soared to $39 per ounce, nearing its 14-year high of $39.5 reached in late July, amid the prospect of a Fed rate cut. Markets also assessed demand for silver’s industrial use. On the industrial front, new data showed that China’s solar panel exports surged more than 70% in the first half of the year, driven by rising demand for photovoltaics in India. This follows China installing over 93 gigawatts of solar panels in May, a 300% increase from a year earlier and a new record high.

Asian markets were mostly higher last week. Japan’s Nikkei 225 (JP225) fell by 1.89%, while China’s FTSE China A50 (CHA50) climbed 3.03%, Hong Kong’s Hang Seng (HK50) gained 0.18%, and Australia’s ASX 200 (AU200) ended the week up 0.32%.

Singapore’s annual inflation rate slowed to 0.6% in July 2025 from 0.8% in the previous month, slightly below market expectations of 0.7%. On a monthly basis, consumer prices fell by 0.4%, the sharpest decline in six months, compared to a 0.1% drop in the prior period. Meanwhile, the annual core inflation rate in July fell to a four-month low of 0.5%, missing market estimates and a 0.6% gain in the previous month.