* Fed holds rates steady, signals cuts possible later this year
* MSCI global stocks index rises, Wall Street indexes up
* Fed decision comes after ECB's Draghi hints at stimulus
* Dollar, benchmark U.S. yields drop
By Lewis Krauskopf
NEW YORK, June 19 (Reuters) - A gauge of global stock markets added to gains on Wednesday and benchmark U.S. Treasury yields and the U.S. dollar fell after the U.S. Federal Reserve signaled possible rate cuts of as much as half a percentage point over the remainder of this year.
The U.S. central bank held interest rates steady and said it "will act as appropriate to sustain" the economic expansion as it approaches the 10-year mark and dropped a promise to be "patient" in adjusting rates. market expects the Fed could cut rates as soon as next month.
"I think it's right in line with market expectations, puts a July cut in play,” said Brett Ewing, chief market strategist at First Franklin Financial Services in Tallahassee, Florida.
Investors' hopes that the Fed would soon cut interest rates had been fueled on Tuesday when European Central Bank President Mario Draghi hinted at economic stimulus, comments that drove up stocks and weakened yields. think the Fed delivered," said John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio. "It did no harm. It walked right up to a cut without doing it today. It'll likely be coming in July, absent some big trade news or other news."
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.66%.
On Wall Street, the Dow Jones Industrial Average .DJI rose 50.53 points, or 0.19%, to 26,516.07, the S&P 500 .SPX gained 5.91 points, or 0.20%, to 2,923.66 and the Nasdaq Composite .IXIC added 8.02 points, or 0.1%, to 7,961.91.
The pan-European STOXX 600 index .STOXX was little changed.
Benchmark 10-year U.S. notes US10YT=RR last rose 5/32 in price to yield 2.0422%, from 2.058% late on Tuesday.
The dollar index .DXY , which measures the greenback against a basket of currencies, fell 0.54%, with the euro EUR= up 0.51% to $1.1248.
U.S. crude CLcv1 fell 0.22% to $53.78 per barrel and Brent LCOcv1 was last at $61.82, down 0.51% on the day.
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https://tmsnrt.rs/2Y7dDQE Multiverse bond index
https://tmsnrt.rs/2Y0uHbg German, US bond yields in sharp falls this year
https://tmsnrt.rs/2Y7buo4
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