Investors focused on Jerome Powell's speech at the Fed's annual Jackson Hole meeting for signs of when the U.S. central bank, trying to cool inflation that is running at multi-decade highs, might raise rates again and by how much.
"The Fed could start thinking about a pause in rate hikes, potentially for the end of the year," said Thomas Costerg of Pictet in a report. "However, it is still too early to talk about rate cuts." Global markets have swung between optimism about stronger corporate profits and unease about possible recession risks.The Dow Jones Industrial Average rose 1% to 33,291.78. The Nasdaq composite climbed 1.7% to 12,639.27.
The Fed's Jackson Hole meeting in Wyoming, which attracts economists from around the world, has been the setting for market-defining announcements in the past.