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But as Powell during his post-meeting news conference repeatedly said the central bank has room to respond if the labor market unexpectedly weakens, markets began a turn. Rate futures prices now reflect about a 17% chance of a 50-basis point rate cut in September, versus about 5% before Powell began speaking. Prices also reflect increased confidence the Fed will cut a total of 75 basis points over its final three meetings of the year, most likely in 25-basis-point increments, bringing the policy rate down to a 4.5%-4.75% range.

Spot gold was up 0.5% at $2,420.00 per ounce, as of 1147 GMT, and has gained more than 4% this month. Bullion, traditionally known for its stability as a favoured hedge against geopolitical and economic risks, thrives in a low-interest rate environment.

(Reuters) -Futures tied to the Nasdaq index rose on Wednesday after a bullish forecast from Advanced Micro Devices drove chip stocks higher even as Microsoft faltered, while investors geared up for the Federal Reserve's rate decision. Nvidia rose 6.5%, Intel 2.3% and Broadcom 6.4%. At 7:15 a.m. ET, Dow e-minis were up 31 points, or 0.08%, S&P 500 e-minis were up 52 points, or 0.95%, and Nasdaq 100 e-minis were up 295.5 points, or 1.56%.

Frustrated with growing economic hardships, Nigerians are planning nationwide protests this week against the country’s worst cost-of-living crisis in a generation. The government of Nigerian President Bola Tinubu says it is determined to prevent such a scenario in a country that has long been a top African oil producer but whose citizens are among the world’s poorest. Nigeria's population of over 210 million people — the continent's largest — is also among the hungriest in the world and its government has struggled to create jobs.

The Federal Reserve is expected to leave interest rates unchanged at the end of a two-day policy meeting on Wednesday, but also indicate that a reduction in borrowing costs could come as soon as September. Contracts tied to the U.S. central bank's policy rate show investors are convinced a rate cut will happen at the Sept. 17-18 meeting, with the only disagreement over whether the Fed will begin easing policy with a quarter-percentage-point reduction, as most expect, or a more aggressive half-percentage-point cut, according to CME Group's FedWatch tool. The Fed has kept its policy rate in the 5.25%-5.50% range for the past year.