Dow Jones DJIA Leads with Record Weekly Close, Approaching 46K Fast after Powell
US stock markets ended the week on a strong footing, with Dow Jones index closing at record levels, lifted by Jerome Powell’s cautiously...
Written by:
Skerdian Meta
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Friday, August 22, 2025
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2 min read
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Last updated: Saturday, August 23, 2025
Quick overview
- US stock markets ended the week positively, with the Dow Jones closing at a record high of 45,631 points.
- Federal Reserve Chair Jerome Powell's dovish remarks sparked optimism, leading to a significant rally in small-cap stocks, particularly the Russell 2000, which rose 3.86%.
- Consumer discretionary stocks in the S&P 500 saw the strongest gains, while technology stocks continued to struggle, contributing to the NASDAQ's weekly decline of 0.58%.
- The overall market momentum suggests increased investor confidence and a potential for further strength in equities as rate cuts remain a possibility.
US stock markets ended the week on a strong footing, with Dow Jones index closing at record levels, lifted by Jerome Powell’s cautiously dovish tone and a broad rally that saw small caps take the spotlight.
Powell Speech Sparks Optimism
Federal Reserve Chair Jerome Powell leaned toward a cautiously dovish message in his latest remarks, leaving the door open to future rate cuts. This triggered renewed optimism across equity markets, with investors shifting significant flows into the Russell 2000. The small-cap index jumped 3.86% for the week, its strongest performance since April 9, underscoring renewed appetite for riskier assets.
Sector Performance in the S&P 500
Within the S&P 500, consumer discretionary stocks delivered the strongest gains of the week, climbing 3.19% as investors rotated into cyclical areas. On the other hand, consumer staples was the only sector to finish lower, edging down 0.35%. The performance across sectors reflects a healthier and more balanced rally developing in the broader market, although technology stocks remain under pressure and continue to act as a drag on momentum.
Dow Jones Daily Surge
The DOW Jones Industrial Average also posted a strong advance, climbing more than 1.5% for the week. The index closed at a record 45,631 points after touching an intraday peak of 45,741, comfortably surpassing previous resistance levels that had been in place since November 2024.
Closing Levels – Friday
Dow Jones Industrial Average
- Gained 846.24 points (+1.89%).
- Marked the largest one-day gain since May 12.
- Closed at a record high.
Dow Jones Industrial Average Index Futures
- Closed at 45,728.00 points
- Gained +874.00 (+1.95%)
- Closed at a record high.
S&P 500 Index
- Rose 96.74 points (+1.52%) to finish at 6,466.91.
- Logged its biggest daily increase since May 27.
NASDAQ Composite
- Climbed 1.88%, achieving its strongest one-day gain since August 4.
Weekly Dow Performance
Dow Jones futures also mirrored this strength, closing the week at a record 45,728 after briefly reaching 45,828 during the session. The S&P 500 managed to hold onto modest gains, while the NASDAQ’s advance on Friday was not enough to offset earlier losses, leaving the index in negative territory for the week.
Weekly Performance
- Dow Jones Industrial Average: +1.53% for the week.
- S&P 500 Index: +0.27%, posting a modest weekly advance.
- NASDAQ Composite: -0.58%, weighed down by weakness in tech stocks.
- Russell 2000 Index: +3.30%, significantly outperforming, reflecting strength in small-cap stocks.
Market Context
- The strong Friday rally suggests renewed optimism in equities, led by blue chips and large caps
- The Dow’s record close highlights investor confidence in established industrial names.
- Tech stocks, despite Friday’s rebound, remain under pressure on a weekly basis, explaining the NASDAQ’s decline.
- The Russell 2000’s sharp gain signals broadening market participation, with small caps catching up after lagging earlier in the year.
Outlook: The combination of a record-setting Dow, a resurgent Russell 2000, and Powell’s softer stance on policy suggests that market momentum is broadening beyond mega-cap tech stocks. Investors appear increasingly confident that the door to rate cuts remains open, setting the stage for further strength in equities. With small caps leading the charge and the Dow breaking into new record highs, the outlook points toward continued resilience heading into the next trading week.
Dow Jones Live Chart
DOW
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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