Federal Reserve Chairman Jerome Powell signalled Wednesday that the Fed could soon cut interest rates, sending stocks higher as the benchmark S&P 500 stock index briefly traded above 3,000 for the first time.

The New Zealand dollar rose after US Federal Reserve put the rate cut back on the table. The kiwi was trading at 66.41 US cents at 8am in Wellington from 65.97 cents at 5pm.

Powell, testifying before the House Financial Services Committee, highlighted ongoing risks to the US economy from President Donald Trump's trade war and a global economic slowdown, suggesting a cut may be likely when