US stocks rise after Fed hints future rate cut

US stocks rose today after the Federal Reserve announced yesterday its decision on interest rates while signing a future cut, as Standard & Poor's reached its highest level ever at 2,956 points.

The Federal Reserve unveiled yesterday its decision to set the interest rate at 2.25% to 2.50%, but hinted that it could be reduced this year, which reduces borrowing costs for companies.

Central Bank President Jerome Powell said there are pressures that slow the growth of the US economy as well as the impacts of the US-China trade dispute.

The markets look forward later for the G-20 summit, which will see an important meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.

Initial jobless claims in the US fell by 6,000 to 216,000 last week, while the current account deficit fell by 9.4% in the first quarter, government data showed.

In terms of trade, Dow Jones rose by 0.8% (equivalent to 203 points) to 26,707 points, as Nasdaq also rose 0.9% (70 points) to 8,056 points, and Standard & Poor's increased by 0.8% (22 points) to 2,949 points.