· Stocks surged on Tuesday, climbing back from a big rout in the past month, after Federal Reserve Chairman Jerome Powell signaled the central bank was open to easing monetary policy to save the economy and as trade tensions eased amid comments by China and Mexico.

The Dow Jones Industrial Average surged 512.40 points, or 2.1% to 25,332.18. The S&P 500 jumped 2.1% to 2,803.27 and the Nasdaq Composite surged 2.7% to 7,527.12. The major indexes had their second-best day of 2019.

Stocks finished the day at their highs, rallying into the close on speculation Republican lawmakers would block President Donald Trump’s efforts to implement new Mexican tariffs on a national-emergency basis.

· Powell said the central bank will “act as appropriate to sustain the expansion.” He noted, however, the Fed does not know “how or when” global trade issues will be resolved. “We are closely monitoring the implications of these developments for the U.S. economic outlook.”

These comments come amid increasing expectations for a Fed rate cut. The CME FedWatch tool indicated a 90% chance of a September rate cut. Expectations for a second rate cut in December were also above80%.

· European stocks rebounded toward the end of Tuesday’s session amid recovering investor sentiment worldwide, with autos emerging as the leading performer with a 3.2% rise.

The pan-European Stoxx 600 climbed 0.65%, while technology stocks were one of only a few sectors still in the red with a 0.2% decline.

· Stocks in Asia gained in Wednesday morning trade, following an overnight rally on Wall Street.

Japan’s Nikkei 225 jumped 1.63% in early trade, with index heavyweight Fanuc surging more than 3%. The Topix index also gained 1.54% as the sectors advanced.

Over in South Korea, the Kospi rose 0.61% as chipmaker SK Hynix soared 3.69%

The ASX 200 in Australia also added 0.78% as the sectors mostly advanced, ahead of the release of the country’s first quarter gross domestic product at 09:30 a.m. HK/SIN.

Reference: CNBC