12:01 PM EDT, 08/23/2024 (MT Newswires) -- US equity indexes rose, with real estate topping the sector charts, after Federal Reserve Chair Jerome Powell said "time has come" to adjust monetary policy and expressed confidence inflation is moving toward the central bank's 2% goal.

The S&P 500 climbed 0.7% to 5,611.9, with the Nasdaq Composite up 0.9% to 17,780.5 and the Dow Jones Industrial Average 0.8% higher at 41,053.4. All sectors except consumer staples rose intraday. Consumer discretionary and materials were among the top gainers.

The CBOE Volatility Index (VIX), also known as the fear gauge, slumped 7.1% to 16.31 as markets priced in the near certainty of an interest-rate cut in September. The probability of a 25 basis-point reduction in the target rate was 68% by Friday afternoon, with the remaining 32% likelihood for a 50 basis-point drop, according to the CME Group's FedWatch Tool.

"The time has come for policy to adjust," Powell said in his address at the Jackson Hole symposium in Wyoming. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

Gold jumped 1.3% to $2,548.51 an ounce, while silver advanced 2.1% to $29.67, on expectations of impending rate cuts.

West Texas Intermediate crude oil surged 1.8% to $74.41 a barrel.

"Overall, the economy continues to grow at a solid pace," Powell said. "But the inflation and labor market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased. As we highlighted in our last FOMC statement, we are attentive to the risks to both sides of our dual mandate."

Most Treasury yields dropped, with the 10-year retreating 5.9 basis points to 3.8%. The two-year yield at 3.92% reflected a decline of 8.8 basis points.

In company news, Workday (WDAY) shares soared 11% intraday, the top gainer on the Nasdaq, as the maker of cloud applications for finance and human resources reported fiscal Q2 results above market estimates and reiterated its full-year subscription revenue outlook.