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The disappointing U.S. employment report for July unleashed a "Freakout Friday" moment in financial markets and triggered a wholesale resetting of expectations for how much the Federal Reserve might cut interest rates next month. There was much to grimace about in the Bureau of Labor Statistics report card on the job market, including a jump in the unemployment rate to a post-pandemic high and the weakest pace of private-sector hiring in 16 months. The BLS added a big footnote to the first page of Friday's release to say Hurricane Beryl - which slammed into Texas during the employment report survey week and left some 2.7 million homes and businesses in the Houston area without power for days - "had no discernible effect" on the month's data.

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%.