Powell’s no news is good news for US stocks

The S&P 500 rose on Wednesday after losing consecutive sessions on Wall Street. The broad index added 0.4%, while the Nasdaq Composite climbed 0.6%.

The Dow Jones Industrial Average traded near its flatline, weighed down by a drop of over 2% in Disney. Investors attempted to push the market higher after the three major averages notched two straight days of declines. However, gains were kept in check as Apple fell into the red territory once again and concerns swirled around troubled regional bank New York Community Bancorp.

Regional bank stocks erased earlier losses after New York Community Bancorp announced a $1 billion capital raise. Shares of the regional bank were halted after tumbling more than 40%, while the SPDR S&P Regional Banking ETF (KRE) traded higher despite falling more than 2% earlier in the session.

Fed Chair Jerome Powell’s testimony at Capitol Hill revealed that the US central bank could lower interest rates this year, but the bank is not immediately ready to cut the cost of borrowing money. Powell confirmed that the bias from here is likely toward lower rates and emphasized potential risks from not cutting.