Global financial markets experienced their strongest single-day rally in months after Federal Reserve Chair Jerome Powell signaled that the central bank is likely to cut interest rates at its upcoming July meeting.
The remarks, made during Powell's semi-annual testimony before the Senate Banking Committee, sent the S&P 500 up 2.3%, the Nasdaq up 2.8%, and triggered positive momentum across Asian markets. India's Nifty 50 closed 1.8% higher at 24,850 points.
"The data we've seen in recent months suggests that inflation is moving sustainably toward our 2% target," Powell told lawmakers. "The Committee will carefully assess incoming data in determining the appropriate timing for policy adjustments."
Bond yields fell sharply, with the 10-year Treasury yield dropping to 3.85%. Currency markets also reacted, with the dollar weakening against most major currencies. Analysts at Goldman Sachs now predict two rate cuts before year-end.
