Markets rose Friday after Federal Reserve Chair Jerome Powell appeared to open the door to lowering interest rates, something analysts say would help boost overall activity in the U.S. economy but at the risk of spurring inflation.

The Dow was set for its first record close of the year and bond yields fell after Federal Reserve Chair Jerome Powell struck an upbeat tone on a September interest-rate cut.

The stock market surged Friday after Federal Reserve Chair Jerome Powell signaled openness to the central banks cutting rates soon.

Investors will be closely eyeing Powell's speech in Jackson Hole on Friday to see if the Fed chair hints at a potential rate cut at the central bank's next meeting.

Federal Reserve Chair Jerome Powell did something on Friday that many people did not think he would do: He raised the possibility that policymakers may be ready to cut interest rates as soon as their September meeting.

The Cboe Volatility Index (VIX) fell to its lowest level of the year on Friday, as US stocks surged following a highly-anticipated speech from Federal Reserve Chairman Jerome Powell that bolstered the case for a September interest-rate cut.