US shares surge as rate cut talk pierces gloom

US stocks rose yesterday , led by a rebound in the technology sector, as Federal Reserve chair Jerome Powell said the central bank would act as appropriate”to trade war risks, leaving the door open for a possible rate cut.

A day after St Louis Fed chief James Bullard said a rate cut may be warranted soon, Powell said the Fed was “closely monitoring the implications” of a trade dispute that has disrupted global markets and posed risks to growth. Wall Street’s main indices have shed more than 6% in May on fears of a recession as trade tensions between the US and China show little signs of easing.