Market Optimism Rises on Powell’s Dovish Stance, Trump Trade Threats Fade
Wall Street rallied behind growing confidence in impending rate cuts, shrugging off renewed U.S.-China trade tensions. Federal Reserve Chair Jerome Powell's dovish remarks ignited a risk-on mood, with futures tied to major indices climbing in early trading. The Dow Jones Industrial Average added 193 points, while S&P 500 and Nasdaq 100 contracts gained 0.6% and 0.9% respectively.
Treasury yields eased as Gold futures surged to a record $4,218/oz, signaling expectations for looser monetary policy. Powell's suggestion that labor market softening could provide room for rate cuts fueled Tuesday's sharp rebound. Market participants now appear to be pricing in a Fed pivot, with the dollar slipping 0.2% against major currencies.