Quotes of American construction companies rose steadily on Friday after Fed Chairman Jerome Powell's speech at a symposium in Jackson Hole, where he admitted the possibility of an interest rate cut as early as September. Shares of Rocket Companies jumped by 8%, Mr. Cooper Group and Beazer Homes added 6% each, KB Home and Lennar — 4% each, and PulteGroup and D.R. Horton — 3% each. Powell noted the continuing inflation risks, but also pointed to a weakening labor market, which investors took as a signal to ease policy. His comments supported the growth of broad stock indexes, especially in the housing sector, which is sensitive to lower mortgage rates. A possible rate cut would be an important reversal after a long period of tight Fed policy aimed at curbing inflation.
