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US stocks soar as Fed chair signals September rate cut

ISTANBUL: Major stock exchanges in the US soared Wednesday as Federal Reserve Chair Jerome Powell provided clear signals for a possible interest rate cut in September that investors much hoped for. The tech-heavy Nasdaq soared almost 452 points, or 2.64%, to 17,599 and the S and P 500 jumped 85 points, or 1.58%, to end the day at 5,522. The Dow, meanwhile, increased 99 points, or 0.24%, to finish the session at 40,842. Powell said in his post-meeting press conference that rising confidence on inflation and a solid labor market could put the September rate cut on the table for the central bank. "If we do get the (macroeconomic) data that we hope to get, then a reduction in our policy rate could be on the table at the September meeting," he said. The VIX volatility index, also known as the fear index, dove 7.6% to 16.35. The 10-year US Treasury yield declined 2.2% to 4.053%. The dollar index decreased 0.5% to 104.02, while the euro gained 0.07% to $1.0823 against the greenback. Precious metals also jumpe d, with gold adding 1.6% to $2,450 per ounce and silver increasing 2.1% to $28.99. Oil prices were up more than 4.2%, with global benchmark Brent crude priced at $81.41 per barrel and US benchmark West Texas Intermediate at $78.46. Source: Anadolu Agency