Rate cut speculation boosts US markets

The prospect of a cut in US interest rates revitalised investor enthusiasm yesterday lifting the American markets and with the Nasdaq climbing more than 3%. At the close of trade Monday, the technology-based index had climbed 60.27 points, 3.2%, to 1951.18 while the Dow Jones gained 135.70 points to 9959.11 and the Standard & Poor 500 added 20.28 to 1170.81. The Federal Reserve will decide today if it should cut interest rates. Both investors and companies will be hoping for a cut, but even if the Fed does reduce base rates it is difficult to see how that will benefit the economy or ...