Markets stutter after rally, oil dips but Middle East worries linger

A string of supportive data in recent weeks and comments from top Federal Reserve officials have helped push equities higher in August after starting the month in turmoil on fears of a US recession. Fed boss Jerome Powell confirmed in a much-anticipated speech Friday that the time had come to begin lowering borrowing costs from their two-decade highs as inflation slows to the bank's two percent target and the labour market softens. Talk is now centred on how much the Fed will cut next month and how far it will go afterwards.