Global stocks and US futures jumped on Wednesday, tracking a boom in US equities on Tuesday, after the US Federal Reserve hinted it might cut interest rates later this year.
Fed Chairman Jerome Powell pledged to ” act as appropriate” to maintain US economic growth in the face of a global trade war. His comments sent the Dow Jones Industrial Average, S&P 500, and Nasdaq up more than 2% — their biggest one-day gains in five months.
The stock-market rally is a “clear case of central banks to the rescue,” said Jasper Lawler, head of research at London Capital Group. “Powell gave the markets what they wanted to hear, and the result was a spectacular rally, as traders increased their bets of a rate cut happening before the year end.”