Markets rose on Wednesday.
The S&P 500 rose 0.8 percent, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 surged 1.8 percent.
“The flexibility of the Fed if needed to cut rates has set the stage for another positive trading session,” wrote Peter Cardillo, chief market economist at Spartan Capital, in a note, referring to Federal Reserve Chairman Jerome Powell's hint at a possible rate cut on Tuesday.
A chart by Barclays shows that between 1974 and 2007, the S&P 500 has gained an average 2.8 percent six months after a Fed cut and 6.7 percent a year after the cut.
However, stocks in Europe were held back by an announcement by the European Commission on Wednesday that disciplinary proceedings against Italy are warranted due to its rising public debt
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