On Wednesday, U.S. stocks saw broad gains after Federal Reserve Chair Jerome Powell stuck by his view that rates are headed to 5%, but the S&P 500 sprang higher after his remarks. Powell confirmed that the central bank will slow the pace of its rate hikes.
U.S. stocks rose, while Treasury yields declined after Fed chief Jerome Powell said that moderation in rate hikes might come as soon as this year. The S&P 500 index rose 0.7%, led by technology and health-care stocks. The Dow Jones Industrial Average rose 0.6%, and the Nasdaq Composite gained 0.8%.
Powell said the Fed will be “paying very close attention to the implications of incoming data for the outlook.” He added that if the economy continues to grow as expected, then the Fed will “likely adjust the stance of policy.”