Wall Street’s main indexes rose on Tuesday, with the S&P 500 and Nasdaq rising more than 1% each following comments from Federal Reserve Chairman Jerome Powell that were deemed less aggressive than expected.
Powell said in a Q&A session at the Economic Club of Washington, that he expects 2023 to be the year of a “significant decline in inflation”.
“He (Powell) isn’t saying anything that makes you think he’s going to raise rates more than the market is expecting at this point,” said Joe Saluzzi, co-manager of trading at Themis Trading in New Jersey.
Read also: US market news: Wall Street edge down ahead of Powell’s comments
“The first question the interviewer asked him was ‘if you had seen that job report would you have done anything differently’ and it doesn’t sound like he would have done that.”
The Fed raised interest rates by 25 basis points last week, pricing in the highest rate in the market now above 5% after data on Friday showed the US economy accelerated employment in January.
At 12:58 p.m., the Dow Jones Industrial Average was up 253.68 points, or 0.75%, at 34,144.70, the S&P 500 was up 48.93 points, or 1.19%, at 4,160.01, and the Nasdaq Composite was up 207.82 points, or 1.75. %, at 12,095.27.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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