NEW YORK (AA) – After posting its biggest decline since Brexit Friday and opening the day with losses, Wall Street ended Monday with gains as investors believe it is less likely the Federal Reserve will raise interest rates later this month.
Fed Governor Lael Brainard said during trading hours that the central bank should protect itself from external risks and not rush increasing its benchmark interest rate.
"Fragility in global markets could again pose risks here at home," she said during a speech at the Chicago Council on Global Affairs.
Brainard, a voting member on the Federal Open Market Committee, expects "[the Fed's] policy to be tilted somewhat in favor of guarding against downside risks relative to preemptively raising rates to guard against upside risks."
The remarks were seen as dovish and cautious, warning the Fed about making a rate hike after the conclusion of its meeting on Sept. 20-21, according to analysts.
Investors adopted a buying position following the comments, believing the likelihood is lower of a rate increase this month.
The Dow jumped 239 points, or 1.3 percent, to close at 18,325. The S&P gained 31 points, or 1.4 percent, to 2,159. And, the Nasdaq was up 85 points, or almost 1.7 percent, to finish the day at 5,211.