Major US stock indexes rose moderately, as hopes for lower interest rates in late July increased after the statements of the Fed.

Powell said that the Central Bank is ready to “act properly” to sustain growth, while uncertainties continue to cloud economic prospects. “Since our meeting in May, contradictory trends have reappeared,” said Powell in his report to Congress. “Many FOMC members have seen that arguments in favor of somewhat more adaptive monetary policy have intensified. Since then, based on incoming data and other events, it is clear that the uncertainties surrounding trade tensions and concerns about the strength of the global economy continue to put pressure on the US economic outlook. ” He also noted that overall growth in the second quarter “slowed down”, while “there is a risk that weak inflation will be even more stable than we currently expect.”

Investors also analyzed the minutes of the June Fed meeting, which indicated that central bankers were more concerned about the prospects for the economy and discussed what reasons might justify a reduction in rates in the next few months. Based on the protocols, many executives were willing to cut rates in the event of a deterioration in the prospects for US GDP growth due to a slowdown in the global economy, weak inflation and uncertainties around foreign trade. "Many believed that additional monetary stimulus in the short term could be justified if (the above) negative effects continue to influence the outlook for the economy over a long period," the protocols said.

Most of the components of DOW finished trading in positive territory (20 of 30). The top gainers were Chevron Corporation (CVX; + 1.69%). Caterpillar Inc. shares turned out to be an outsider. (CAT; -1.05%).

Most sectors of the S & P recorded an increase. The raw materials sector grew the most (+ 1.1%). The largest decline was shown by the conglomerate sector (-0.2%) and the industrial goods sector (-0.2%) ..

At the time of closing:

Dow 26,860.20 +76.71 +0.29%

S & P 500 2,993.07 +13.44 +0.45%

Nasdaq 100 8,202.53 +60.80 +0.75%

U.S. stock-index futures rose on Wednesday after Fed’s Chairman Jerome Powell stated the central bank was ready to “act as appropriate” to sustain expansion, bolstering expectations of an interest rate cut later this month. 

Global Stocks:

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Initiations before the market open

FedEx (FDX) initiated with a Buy at Goldman and added to 'Conviction Buy List'; target $200