Market Cues: From Powell’s Jackson Hole Speech To GDP Growth Numbers, Here’s What Will Likely Impact D-Street Next Week

The truncated four-day week starting August 25 will be eventful for Dalal Street as several market developments which have ensued over the weekend and key macro data are set to impact trade

Updated on: 24 August 2025 7:00 am

Here are the key market cues that are likely to influence trading action on Dalal Street next week. (AI-generated) Photo: Gemini AI

Summary of this article

Powell’s dovish Jackson Hole speech raised hopes of a September Fed rate cut
US Dollar Index slipped 0.90 per cent to 97.73, improving hopes of FII inflows
RBI may follow Fed with rate cuts amid slowing credit and growth concerns
Key macro data ahead: India IIP and GDP numbers from US, India

Domestic equities ended the week on a weak note, as benchmark indices snapped their six-day winning streak on August 22, 2025. The Nifty 50 fell 213.65 points, or 0.85 per cent, to close at 24,870.10. Likewise, the Sensex ended 693.86 points, or 0.85 per cent lower at 81,306.

However, on a weekly basis, both the indices logged gains. The Sensex surged 709 points, or 0.88 per cent, while the Nifty 50 climbed 238.8 points, or 0.97 per cent during the week.

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The four-day truncated week ahead, from August 25 to August 29, will be packed with action on the Dalal Street as a host of market developments which ensued over the weekend and several macroeconomic data are set to release. Notably, August 27 will be a trading holiday on the occasion of Ganesh Chaturthi.

Key Market Cues To Watch Next Week

Here are the key market cues that are likely to influence trading action on Dalal Street next week:

Powell’s Speech At Jackson Hole

Federal Reserve Chair Jerome Powell sounded dovish during his speech at the three-day annual Jackson Hole Symposium, Wyoming, United States. That means, a rate cut is likely imminent in September.

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said.

US stock market cheered Powell’s speech. Market Participants will be reacting to Powell’s dovish speech when trading activity starts next week.

Weaking US Dollar

US Dollar Index slipped 0.90 per cent to 97.73. A weakening US Dollar typically prompts foreign institutional investors (FIIs) flows into emerging economies like India. Market participants will be closely tracking for any further weakness in the green-back currency.

RBI Rate Cut Hopes

A rate cut by the US Fed could also give more room for the Reserve Bank of India (RBI) to cut repo rates.

“Action of rate cut by Fed in September will actually open the door for RBI to follow suit in face of slowing credit and economic growth,” said Vishal Goenka, Co-Founder, IndiaBonds.com.