Dow Jones edges higher after Powell’s speech

Wall Street trading got off to a mixed start on Wednesday as market participants digest remarks and comments by Fed Chair Jerome Powell at the European Central Bank forum.

As of 1530 BST, the Dow Jones Industrial Average was up 0.42% at 31,077.05, while the S&P 500 traded 0.07% firmer at 3,824.18 and the Nasdaq Composite came out the gate 0.05% softer at 11,175.87.

The Dow opened 130.06 points higher on Wednesday, doing little to reclaim losses recorded in the previous session when market participants came to terms with news that consumer confidence had hit a 16-month low.

Markets are firmly focused on goings-on across the pond on Wednesday, with Fed’s Powell saying the US economy was in “strong shape” and that the central bank will be able to reduce inflation to 2% at the same time as maintaining a solid labour market.

On the macro front, the US economy shrank at a 1.6% annual clip in the first quarter of 2022, according to the Bureau of Economic Analysis, a sharp reversal from the 6.9% increase in the fourth quarter after corporate profits fell more than originally expected.