Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Wall Street ends sharply higher, Powell assuages rate worries

Economy Mar 03, 2022 00:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs 2/2
 
NDX
+0.10%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
+0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPX
-0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
N1DA34
+2.36%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Devik Jain and Noel Randewich

(Reuters) - Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell signaled the central bank would likely raise interest rates less than some investors had feared.

Powell's comments, in testimony to the U.S. House of Representatives Financial Services Committee, helped calm investors after Russia's invasion of Ukraine sent markets into a tailspin.

Powell said he is inclined to support a 25 basis point rate hike in March, quelling some concerns about the potential for a more aggressive rate hike.

Traders now see a 95% probability of a 25 basis point hike in March. [IRPR]

All the 11 S&P 500 sector indexes advanced, with financials jumping 2.6% after falling sharply so far this week. The banks index rebounded 3% after hitting its lowest level since September 2021 in the previous session.

Energy shares resumed their march higher, with the S&P 500 energy index rallying 2.2% as Brent crude jumped to near eight-year highs after Western sanctions disrupted transport of commodities exported by Russia.

Russia's week-old invasion has yet to achieve its aim of overthrowing Ukraine's government. Ukrainians said they were battling on in the port of Kherson, the first sizeable city Russia claimed to have seized, while air strikes and bombardment caused further devastation in other cities.

"From day to day you go from the fear of escalation that could make things very bad to the hope that it will not really happen and that cooler heads will prevail, and that the economy is strong enough to get through this," said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta.

Apple (NASDAQ:AAPL) ended 2.1% higher after announcing a product launch for March 8, when it is expected to promote a low-cost version of its popular iPhone with 5G.

The Dow Jones Industrial Average rose 1.79% to end at 33,891.35 points, while the S&P 500 gained 1.86% to 4,386.54.

The Nasdaq Composite climbed 1.62% to 13,752.02.

Reflecting the breadth of Wednesday's rally, the S&P 500 value index climbed 1.9% and the growth index added 1.7%.

The Philadelphia Semiconductor Index jumped 3.4%, lifted by an 8.2% jump in Micron Technology (NASDAQ:MU).

Volume on U.S. exchanges was 13.1 billion shares, compared with a 12.4 billion average for the full session over the last 20 trading days.

Data showed U.S. private employers hired more workers than expected in February as the labor market recovery gathered steam.

Nordstrom Inc (NYSE:JWN) surged 38% after the department store chain forecast upbeat full-year revenue and profit.

Advancing issues outnumbered declining ones on the NYSE by a 2.60-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored advancers.

The S&P 500 posted 26 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 51 new highs and 123 new lows.

Wall Street ends sharply higher, Powell assuages rate worries
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email