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US-STOCKS-MARKETS
US stocks rally on Powell speech, Dow +2.2%
NEW YORK, Nov 29, 2018 (BSS/AFP) – A rally on Wall Street gathered steam
on Wednesday, as investors hailed remarks from the Federal Reserve chairman
suggesting interest rates may not rise too much further.
The benchmark Dow Jones Industrial Average was up 2.2 percent at 25,297.70
around 1850 GMT, while the broader S&P 500 gained 1.9 percent at 2,732.55.
The tech-heavy Nasdaq was 2.4 percent higher 7,232.55.
Federal Reserve Chairman Jerome Powell, in remarks to the New York
Economic Club, charted a middle ground, saying rates still were too low but
only “just below” the estimate of neutral — a rate that neither stimulates
nor restrains the economy.
Powell’s characterization of interest rates as nearly normal “were the
magic words,” said Gregori Volokhine of Meeschaert Financial Services.
“That’s what the market wanted to hear.”
The remarks were “dovish” in light of Powell’s remarks last month that
interest rates were “a long way from neutral,” Briefing.com said.
Powell is widely expected to oversee another interest rate hike next
month. But market watchers have been hoping for relief in the wake of stock
market volatility in recent weeks that was due in part to worries about the
Fed.
Powell’s remarks came a day after President Donald Trump reiterated
criticism of Powell, telling The Washington Post he was “not even a little
bit happy” with the Fed chairman.
Major gainers in the Dow included Apple, Boeing, Microsoft and Nike. All
were up at least three percent.
BSS/AFP/HR/0950