The U.S. stock market closed sharply higher Friday, as investors cheered the potential for interest rate cuts following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium.

Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.