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On the evening of August 23rd, Beijing time, Federal Reserve Chairman Powell delivered an important speech at the Jackson Hole Global Central Bank Annual Meeting.

Powell said:Now is the time for policy adjustment. The way forward is clear, and the timing and pace of rate cuts will depend on incoming economic data, the changing outlook, and the balance of risks.”

Powell also said that he is more confident that inflation will return to 2% and that every effort will be made to support a strong labor market while making further progress in achieving price stability.

Nick Timiraos, the "Federal Reserve mouthpiece," posted on social media that today's speech showed that Powell's policy shift had been completed. Powell showed an overall dovish stance in his speech. Two years ago, he also said at the same time that the Federal Reserve would accept a recession as the price of restoring inflation.

Peter Cardillo, chief market economist at Spartan Capital Securities, said Powell was dovish and said there was enough room to deal with any risks that might come, which I think was a key point. What he meant was that if the labor market continues to be weak, we might cut interest rates by 50 basis points in September instead of 25 basis points.

"It is time for a policy adjustment and we do not seek or welcome a further cooling of labor market conditions." This is another key point that tells us that a 50 basis point rate cut will be in September. He seemed to be responding to the sharp adjustment to the non-farm data in the previous few days. Powell was more dovish today and we saw the market react accordingly. I think we will have two rate cuts this year, a total of 75 basis points, especially if the August non-farm payrolls report shows further weakness.

After Powell's speech was released, the yield on the 10-year U.S. Treasury bond plunged from 3.8350% to nearly 3.8%, and the overall decline during the day widened to more than 5 basis points.

The two-year U.S. Treasury yield plunged from above the psychological 4% integer mark to below 3.9450%, with an overall drop of about 6 basis points during the day.

Spot gold rose by more than 1.2%, hitting a new intraday high of $2,515.55 per ounce. As of press time, London gold rose by 0.82%.

Spot silver also rose by more than 2% at one point. As of press time, London silver was up 1.6%.

The U.S. dollar index plunged, falling 0.65%.

The three major U.S. stock indices all rose by more than 1%, and then the gains narrowed. As of press time, the Dow Jones Industrial Average rose 0.82%, the Nasdaq rose 1%, and the S&P 500 rose 0.80%.

Most large technology stocks rose. Tesla rose more than 3%, Nvidia rose more than 2%, Apple rose 0.71%, Amazon and Google rose more than 0.4%, Microsoft fell 0.38%, and Meta fell 0.25%.