US stocks surged on Friday, trimming most of the losses from the week after remarks from Federal Reserve Chairman Powell in his Jackson Hole strengthened bets of an incoming rate cut. The S&P 500 and the Nasdaq 100 jumped 1.3% to approach their records from last week, while the Dow soared 700 points. The Chairman stated that upside risks to inflation have diminished that employment risks are on the downside, noting that the shifting balance of risks may warrant an adjustment to policy. Even though Powell balanced the rhetoric with warnings that inflation expectations could become unanchored, the remarks drove markets to gain certainty of an incoming rate cut next month and pile on bets of more rate cuts in the fourth quarter. Tech shares underperformed core sectors as markets on more unease on the high valuations of companies in the artificial intelligence space. Nvidia was around the flatline ahead of its earnings next week, seen as a global indicator for AI demand.