Stocks jumped and the dollar retreated Wednesday as trade war fears were overshadowed by comments from Federal Reserve boss Jerome Powell that suggested the bank would cut interest rates again this month.

After a volatile couple of days characterised by a fresh flare-up in China-US tensions, investors took the opportunity to jump back into the market and resume a months-long, tech-fuelled rally.

Powell has for most of the year walked a fine line between trying to keep a cap on US inflation while also supporting the labour market, even as he faced a barrage of abuse from President Donald Trump for not lowering borrowing costs soon enough.

And while price gains continue to outpace the bank's target pace, a series of weak readings has forced him to turn his focus on jobs, and last month announced the first rate cut since December.

And on Tuesday he indicated more were on the way.

"In this less dynamic and somewhat softer labour market, the downside risks to employment appear to have risen," said Powell, adding that longer-term inflation expectations remained aligned with the Fed's two-percent........

© International Business Times