** Shares of boutique investment banks climb after Federal Reserve Chair Jerome Powell points to possible rate cut in September

** Traders now put nearly 90% probability on a rate cut in September, versus about 75% before Powell's remarks

** Dealmaking activity is expected to increase as interest rates decrease, boosting fees earned from advising on transactions and underwriting bond and stock sales for investment banks

** Moelis MC.N, Jefferies JEF.N, Evercore EVR.N, and Piper Sandler PIPR.N rise nearly 4%

** Stifel Financial SF.N and Lazard LAZ.N up nearly 3%

** Houlihan Lokey HLI.N, PJT Partners PJT.N and Oppenheimer OPY.N up nearly 2%

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))