Markets Stir as Fed Hints Leave Investors on Edge

Global equities remained largely stable while the dollar gained and gold dipped following comments from Fed Chair Jerome Powell. Investors continue to speculate over interest rate cuts, particularly as recent U.S. housing data exceeded expectations. Meanwhile, the market's attention is fixed on upcoming economic indicators.

As investors absorbed Federal Reserve Chair Jerome Powell's cautious remarks on future interest rate reductions, global stock markets exhibited little movement, while the dollar strengthened and gold prices weakened.

Powell's comments, delivered following the Fed's recent meeting, highlighted the challenging balancing act faced by policymakers between curbing inflation and bolstering employment. Despite his caution, traders are anticipating another rate cut in October, according to CME Group's FedWatch tool.

The financial market is also reacting to unexpected positive housing data, contributing to the sentiment that interest rate hikes might not be necessary. Additionally, oil prices saw significant boosts from declining inventories, and the cryptocurrency market showed strength with notable gains in bitcoin value.

(With inputs from agencies.)