CNBC Daily Open: Fed signals rate cut; U.S. stocks soar; oil gains as Middle East tensions rise

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Rate cut on horizon
The Federal Reserve expectedly kept its benchmark rate steady at 5.25% to 5.50% on Wednesday, but Chairman Jerome Powell signaled the U.S. central bank could cut the rate in its September meeting. The Fed's overnight borrowing rate, currently at its highest in 23 years, has held steady over the past year but is widely expected to come down this year as inflation begins to ease.

U.S. stocks rally
U.S. stocks jumped after Powell said a rate cut in September was "on the table." The S&P 500 closed 1.58% higher, the Nasdaq Composite gained 2.64%, and the Dow Jones Industrial Average added 0.24%. Nvidia soared 12.8%, its best one-day performance since Feb. 22, after better-than-expected results from rival Advanced Micro Devices brought chip bulls back.Boeing added 2% even as it reported a bigger loss and weaker revenue than what analysts had expectedandnamed anew CEO. Treasury yields fell after the Fed announcement while gold rose.

Meta shines
Meta beat expectations as second-quarter revenue grew 22% to $39.07 billion while net income jumped 73% to $13.47 billion, boosted by higher advertising on Facebook and Instagram. The results come a week after Alphabet reported an 11% increase in Google ad sales. Meta expects "significant capital expenditures growth in 2025 as we invest to support our artificial intelligence research and product development efforts." The stock rose 7% in after hours trading.

Oil gains
U.S. crude oil futures rose 4% on Wednesday after Hamas political leader Ismail