Stocks mostly rose and the dollar retreated Wednesday on hopes for further US interest rate cuts and a solid set of company earnings.

Gold surged to a new high above $4,200 an ounce, boosted also by a fresh flare-up in China-US tensions.

The dollar was weighed down by warnings from Federal Reserve boss Jerome Powell on risks to the US labour market, reinforcing expectations the central bank will cut rates at its October meeting.

"The dollar's pullback reflects both improved global risk sentiment and dovish comments from Fed Chair Powell, who signalled that rising labour market risks justify another rate cut," said City Index and FOREX.com analyst Fawad Razaqzada.

A series of weak jobs reports led the Fed to trim borrowing costs last month for the first time in 2025. The prospect of r

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