Stocks Rally, Dollar Slips on Fed Rate-Cut Bets: Markets Wrap

Stocks rallied with futures and the dollar weakened as optimism over a potential Federal Reserve interest-rate cut revived risk sentiment and outweighed renewed US-China trade tensions.

Asian shares rose 1.9%, the biggest intraday jump in more than two months, after Fed Chair Jerome Powell’s concerns about a weakening labor market reinforced expectations for an October rate cut. A gauge of the dollar fell for a second day, sending Asian currencies higher, while Treasury two-year yields hovered near their lowest levels since 2022. Gold hit a new peak.

Contracts for the Nasdaq 100 index extended their gains and rose ...