Stocks rise as Powell signals rates cut

NEW YORK (AP) — The latest on developments in financial markets (all times local):

Stocks rose and bond yields fell as investors welcomed new signals that the Federal Reserve is ready to cut interest rates for the first time in a decade.

Fed Chairman Jerome Powell said Wednesday that many Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut.

Technology and communications companies drove much of the gains. Cisco Systems rose 1.7% and Verizon climbed 1.2%.

The S&P 500 index rose 13 points, or 0.4%, to 2,993. It briefly traded over 3,000 for the first time.

The Dow Jones Industrial Average gained 94 points, or 0.3%, to 26,874. The Nasdaq added 52 points, or 0.6%, to 8,193.

The dollar fell against other currencies and bond yields dropped as investors anticipated lower interest rates.

Stocks are opening broadly higher on Wall Street after the head of the Federal Reserve indicated the central bank is ready to cut interest rates.

Technology companies and communications services stocks drove much of the gains in early trading Wednesday. Western Digital rose 3.3% and Take-Two Interactive climbed 2.5%.

Fed Chair Jerome Powell said in prepared congressional testimony that a slowing global economy and trade tensions had strengthened the case for looser monetary policy.

Helen of Troy jumped 12.5% after reporting fiscal first-quarter results that topped Wall Street's forecasts.

The S&P 500 index rose 16 points, or 0.5%, to 2,995.

The Dow Jones Industrial Average gained 130 points, or 0.5%, to 26,911. The Nasdaq added 71 points, or 0.9%, to 8,212.

Source: Yahoo.com

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