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Stocks Jump Most Since January on Jolt From Powell: Markets Wrap

  • Fed Chairman signals openness to cut interest rates if needed
  • Banks jump as Mike Mayo sees 1995 ‘party’ in event of rate cut
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Fed's Powell Says Will 'Act as Appropriate' If Needed on Trade TensionSource: Bloomberg
Updated on

U.S. stocks climbed the most since January as Federal Reserve Chairman Jerome Powell signaled an openness to rate cuts and Mexican officials said they expect to avoid Trump administration tariffs.

Big banks surged as Wells Fargo analyst Mike Mayo said the industry would be set to “party like it’s 1995” if rates were cut. Treasury yields rose from multiyear lows as Powell stopped short of signaling an imminent move. Carmakers and chip manufacturers rallied as Mexico’s president said he hopes to reach a deal with the U.S. before next week’s deadline, with his foreign minister seeing 80% odds to negotiate a solution. The peso jumped.