Stocks rise on hopes for a second interest rate cut

The Dow was up 270 points, while the S&P 500 added 1% and the Nasdaq advanced 1.5%.

Hopes for another rate cut increased after IHS Markit’s U.S. manufacturing PMI dropped to its lowest level since September 2009. IHS said employment in the sector fell to its lowest level since 2013. Muted client demand and a slower increase in production weighed down the manufacturing space.

The Fed cut interest rates by 25 basis points Wednesday — its first cut in more than a decade — citing global developments along with muted inflation as reasons for easing monetary conditions.

But Chairman Jerome Powell told reporters in a news conference after the Federal Open Market Committee’s rate decision that the central bank’s rate cut was a midcycle adjustment, hinting that further rate cuts later this year were not a sure thing.

But Chairman Jerome Powell told reporters in a news conference after the Federal Open Market Committee’s rate decision that the central bank’s rate cut was a midcycle adjustment, hinting that further rate cuts later this year were not a sure thing.

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