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.

Wall Street cheered remarks from Federal Reserve Chair Jerome Powell in Jackson Hole opening the door to a rate cut in September.

Stocks surged Friday and the Dow closed at its first record high of the year after Federal Reserve Chair Jerome Powell signaled interest rate cuts could be on the way.