Wall Street is rejoicing on the latest comments by Jerome Powell. The S&P 500 has gained the first day in four following significantly dovish comments by Fed\u2019s Jerome Powell confirming that the US Fed will slow the pace of its hawkish rate-hiking that impacted financial and exchange markets.
The broad index added 1% following Powell\u2019s comments. The Dow Jones Industrial Average was up 157 points, or 0.5%. Meanwhile, the tech-heavy Nasdaq Composite jumped 1.1%.
\u201cIt makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,\u201d Powell said in a speech at the Brookings Institution, adding that \u201cthe time for moderating the pace of rate increases may come as soon as the December meeting.\u201d
But overall stock gains were muted as Powell also warned that Fed could maintain its previously adopted restrictive policy for a long time before it ends its endeavours and measures that are meant to to combat inflation.
\u201cDespite some promising developments, we have a long way to go in restoring price stability,\u201d Powell said.
Powell\u2019s comments cemented optimism among investors and traders that the US central bank will decide on a smaller 0.5 percentage point rate hike at its next meeting after the previous four successive 0.75 percentage point hikes to tame hot inflation. Any signal of a slower-paced tightening is sufficient reason why markets can edge higher.
The 10-year Treasury yield eased a bit on the news. Wednesday\u2019s jumps add to gains already achieved by the major indexes over the positive month of November. The Dow and S&P 500 are both set to end the month up more than 3%, while the Nasdaq Composite is on track to gain 1.5%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Wall Street is rejoicing on the latest comments by Jerome Powell. The S&P 500 has gained the first day in four following significantly dovish comments by Fed\u2019s Jerome Powell confirming that the US Fed will slow the pace of its hawkish rate-hiking that impacted financial and exchange markets.The broad index added 1% following Powell\u2019s comments. …<\/p>\n","protected":false},"author":13,"featured_media":31017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[6885,8143,10064,7163,8496,6862],"class_list":["post-76513","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-fed","tag-interest-rate-hikes","tag-interest-rate-hiking-pace","tag-jerome-powell","tag-tightening-monetary-policy","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/76513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=76513"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/76513\/revisions"}],"predecessor-version":[{"id":76521,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/76513\/revisions\/76521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31017"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=76513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=76513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=76513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}