NEW YORK: Wall Street shares jumped on Wednesday, as Federal Reserve Chair allayed concerns about higher oil prices Jerome Powell Indicates a patient approach to interest rate hikes.
Despite ongoing concerns about the impact of the war UkraineThe Dow Jones Industrial Average ended 1.8 per cent higher at 33,891.35.
The broad-based S&P 500 rose 1.9 percent to 4,386.54, while the tech-rich Nasdaq Composite The index rose 1.6 percent to 13,752.02.
US oil prices ended at their highest level since 2011 after Saudi Arabia, Russia and other top oil exporters refused to sharply increase production despite the impact of Russia’s invasion of Ukraine.
While a rise in crude is expected to worsen already worrying inflation, markets favored a modest quarter-point increase in the benchmark lending rate rather than a more aggressive, half-point hike for the first leg in Powell’s comments.
But, he said, “we will need to be nimble in responding to incoming data and evolving outlook,” and left open the possibility of bigger moves if inflation remains high.
Jack Ablin of Cressett Capital Management said investors appreciated signs that the Fed “may not have to tighten as aggressively as we all originally thought,” who said futures markets will take a hit in 2022. The number of hikes in interest rates has been reduced.
Analysts also said that the market was bullish on excessive selling sentiment due to Ukraine.
Among individual companies, Ford jumped 8.4 percent as it announced it was creating separate businesses for its traditional and electric-auto operations, as it accelerates manufacturing emissions-free vehicles.
Department store chain Nordstrom grew 37.8 percent as it delivered better-than-expected results and projected revenue growth of five to seven percent in 2022.
Despite ongoing concerns about the impact of the war UkraineThe Dow Jones Industrial Average ended 1.8 per cent higher at 33,891.35.
The broad-based S&P 500 rose 1.9 percent to 4,386.54, while the tech-rich Nasdaq Composite The index rose 1.6 percent to 13,752.02.
US oil prices ended at their highest level since 2011 after Saudi Arabia, Russia and other top oil exporters refused to sharply increase production despite the impact of Russia’s invasion of Ukraine.
While a rise in crude is expected to worsen already worrying inflation, markets favored a modest quarter-point increase in the benchmark lending rate rather than a more aggressive, half-point hike for the first leg in Powell’s comments.
But, he said, “we will need to be nimble in responding to incoming data and evolving outlook,” and left open the possibility of bigger moves if inflation remains high.
Jack Ablin of Cressett Capital Management said investors appreciated signs that the Fed “may not have to tighten as aggressively as we all originally thought,” who said futures markets will take a hit in 2022. The number of hikes in interest rates has been reduced.
Analysts also said that the market was bullish on excessive selling sentiment due to Ukraine.
Among individual companies, Ford jumped 8.4 percent as it announced it was creating separate businesses for its traditional and electric-auto operations, as it accelerates manufacturing emissions-free vehicles.
Department store chain Nordstrom grew 37.8 percent as it delivered better-than-expected results and projected revenue growth of five to seven percent in 2022.