What is driving the market on Friday as US stocks surge and the dollar marks its sixth consecutive week of gains, despite concerns from the Federal Reserve?

US stocks continue to show resilience despite mixed signals from the Jackson Hole conference. Federal Reserve Chair Jerome Powell has reaffirmed the central bank’s readiness to raise interest rates if necessary. However, there is not unanimous agreement among board members, as some express preference for maintaining rates at their current level. Cleveland Fed President Loretta Mester has indicated a more hawkish stance, suggesting that rate cuts in 2024 are unlikely. Market participants are cautious and increasing their bets on potential rate hikes, with a 58% probability of a rate hike in September. The US dollar index is up 0.2% and on track to close its sixth consecutive week of gains. US stock indices performed well on Friday, with the S&P 500 rising 0.4% and the Dow gaining 0.5%. The market focus is now on Powell’s speech at the Jackson Hole conference.