ISTANBUL

Major US stock exchanges rallied Friday to close the session higher as Federal Reserve Chair Jerome Powell signaled a rate cut in September.

The Dow Jones Industrial Average increased 462 points, or 1.14%, to finish the day at 41,175. The blue-chip index gained 1.3% for the week.

The S&P 500 added almost 64 points, or 1.15%, reaching 5,634. For the week, the index rose 1.45%.

The Nasdaq Composite jumped 258 points, or 1.47%, to 17,877. The tech-heavy index posted a weekly increase of 1.4%.

The VIX volatility index, referred to as the "fear index," dove 9.6% to 15.86. The 10-year US Treasury yield lost 1.5% to 3.804%.

The US dollar index fell 0.82% to 100.68, while the euro added 0.73% against the dollar at $1.1193.

Precious metals were in positive territory, with gold rising 1.1% to $2,512 per ounce and silver adding 2.9% to $29.83 per ounce.

Oil prices were up more than 2.3% with global benchmark Brent crude at $79.00 per barrel and US benchmark West Texas Intermediate at $74.96 per barrel.

Fed Chair Powell said earlier Friday the "time has come" for an adjustment in monetary policy.

"The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," he told the annual Jackson Hole symposium in the US state of Wyoming.